HSBC has downgraded Bajaj Housing Finance share to a reduce rating with a target price of Rs 100, citing headwinds that could weigh on earnings growth despite healthy asset under management (AUM) expansion in Q4FY24.
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The brokerage noted that while AUM growth remained strong, the quarter was impacted by a high cost ratio and yield compression, attributed to increased competition.
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HSBC expects a slowdown in EPS growth, driven by pressure on AUM expansion, net interest margin (NIM) compression, and normalisation of credit costs.
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Consequently, it has revised down its FY26–27 EPS estimates by 2.8%–3.1%.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
