Do we get any shares of bajaj housing limited based on bajaj finance holding ? or just have to apply via ipo, any insights on this?
There could be a quota for shareholders of Bajaj Finance and Bajaj Finserv.
No onus.
Bajaj Finance - Analysis - 25 Aug 2024.pdf (803.9 KB)
Pls check this.
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Seems like Time Correction is going on !
However there seems to be no change in Sales growth as well as Profit growth.
Disc : Invested & Biased.
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Has anyone analysed the valuation multiple for BHF? If the company lists at ₹140, representing a 100% premium, it would be trading at a P/B ratio of 6.4 based on the June 2024 book value. No other housing finance company is currently trading at such a high multiple. The market is assigning it a similar multiple to BFL (P/B of 6.04). Is this valuation sustainable?
I have tried this trick many times with some success. Many investors advise you to buy the best company in the sector. To me that sometimes becomes like chasing a helium filled baloon. When Titan was going great guns, I thought of Kalyan. Then of Radhika Jeweltech.
You often get entry into the sector through an easier door.
I have recently bought some Motilal Housing at a grand rate of ₹13.75. They are unlisted. Though they are not Bajaj, but they are Motilal, not a fly by night operator by any means. They are unlisted, but so was Bajaj Housing Finance till yesterday (it still is).
Only you will have to show patience.
I hope I have not really digressed from the topic.
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Hi, can you please share how you buy or sell unlisted companies?
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I have through Altius. I explore other sides too. Prices fluctuate between the sites. Spread could be massive. And the really hot stocks suddenly disappear.
There is a thread on unlisted shares.
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At the risk of digressing a bit from the topic, can you just shed some light on why you decided to enter Motilal Housing at a P/B of 6.89. I understand in the future listing gains and everything will come into picture but right now since Bajaj Housing is floated for a 3.2 P/B that itself is much higher compared to other entities in the sector (most are below 2). The IPO frenzy may result in Bajaj being listed at a P/B of 6.4 maybe but considering the housing sector do you think this is sustainable, or you have some other thoughts?
Two things may happen from here onwards, either Bajaj Housing will fall after certain period of getting listed or other NBFCs will get rerated and may rise up. I maybe massively out of line on this but just want to understand your underlying logic of going with Motilal Housing.
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“The ₹6,560-crore IPO of the Bajaj Group company generated an overwhelming response, with bids amounting to ₹3.24 lakh crore. This resulted in an overall subscription rate nearly 64 times the available shares. The retail individual investors (RIIs) segment saw a subscription of over seven times, while the demand from qualified institutional buyers (QIBs) surged to 209.36 times. Meanwhile, the non-institutional investors (NII) category witnessed a subscription of 41.51 times the shares offered.”
Source:
Retail oversubscription is just 7 times. It’s the others who generally is not in for listing gains did a lot of over subscription. I guess bajaj housing finance could hold the price due to scarcity premium.
Or it could go the Tata technologies way, issue price 500, listed at 1400 but within days it went to 1000 and now consolidating in the range of 950 to 1100. Anything we discuss about price sustenance will be nothing more than speculation.
Disc: Got one lot in IPO. Opinion is biased. I can be wrong as well.
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Does it list swiggy? If so, what’s the price and what’s the lot size?
You may be right, but I can’t imagine a Motilal Oswal share opening at below ₹13.75. Housing Finance is flavour of the day too. Let me confess that I have not deep dived into it.
Yes. At ₹520.
Disclaimer: I am not invested in Swiggy.
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How does the stellar listing of Bajaj housing finance affect Bajaj Finance in terms of valuation multiples? Does anything change?
Working as you anticipated. I see you have a nice document created, it this something you provide as a service?
Swiggy CCPS was listed till a week back on InCred Money and that was at a price of 379. Minimum lot was around 5.5L+ worth. The CCPS is listed on Altius also but at a higher price of 420, and the shares are listed at about 520 as pointed above. Although it can have a Zomato story but the issue with Swiggy is that even at comparable business like Zomato they are making more than 1000Cr loss whereas Zomato is profitable. Keeping aside that Swiggy is aiming to list at around 550-600 (they are looking for a 60% valuation of Zomato).
Disclosure: After considering for quite some time, decided not to invest. Hence may have some negative bias.
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Actually yes. Bajaj Finance still holds about 89% in Bajaj Housing and hence its valuation has increased with share price of Bajaj Housing cloking 180+ today. If you do rough calculations and take 6500 (25th Aug) of Bajaj Finance as the reference point, then in similar conditions Bajaj Finance price should be around 7700 (current 7400). So price of Bajaj Finance can go up by 4-5% provided Bajaj Housing stays at this level.
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Bajaj Finance Ltd.
Market share : Personal Loans Market share stood at 7% in the personal loan segment.
This was consistent with pre-COVID levels and remained steady in FY2024 (bajaj jun24) held a 51-52% market share in consumer durable loans
Growth Guidance for Bajaj Finance (as of March 2024 and June 2024):
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Asset Under Management (AUM) Growth:
- In FY2024, Bajaj Finance reported a 34% AUM growth, increasing its total AUM to ₹330,600 crores.
- For FY2025, the company provided guidance of 26-28% growth in AUM, supported by newly launched secured businesses such as loans against property, car financing, and tractor finance.
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Profitability:
- For FY2024, the PAT (Profit After Tax) grew by 21%, and the company reported an ROE of 20.5%.
- For FY2025, Bajaj Finance expects a moderation in PAT growth, with profits becoming more rear-ended due to the initial NIM (Net Interest Margin) compression.
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Customer Acquisition:
- Bajaj Finance added 14.5 million new customers in FY2024 and projects adding between 12 to 14 million customers in FY2025.
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New Product Launches:
- The company continues to diversify its product mix, focusing more on secured lending products like home loans and vehicle financing.
- Notably, BHFL, a 100% subsidiary of Bajaj Finance, is also planning an IPO (its complete now).
Risks:
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Rural B2C Loan Performance:
- The company’s rural B2C loan portfolio has shown signs of stress, with a significant reduction in growth from 25% to 6% by March 2024.
- Bajaj Finance has slowed down rural B2C growth until it can better manage the risks in this sector, which may constrain growth potential.
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NIM Compression:
- There was a 21-basis point compression in NIM in Q4FY2024 due to rising cost of funds and a pivot towards secured lending products. This NIM compression is expected to stabilize by Q3 of FY2025.
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Regulatory Challenges:
- Regulatory restrictions impacted two key products, eCOM and Insta EMI Card, but the company has addressed the issues and requested a review from the RBI.
- There are ongoing concerns regarding regulatory compliance, and the company remains committed to adhering to the RBI’s guidelines.
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Credit Costs:
- Credit costs for Bajaj Finance are expected to remain in the 1.75-1.85% range, with the company taking a cautious stance due to muted collection efficiencies in certain segments like rural lending.
Bajaj housing finance is part of Bajaj finance. Bajaj Housing finance is listed in stock market now, but why they did not gave any shares to the current bajaj finance shareholders? Is it fair?