Bajaj Housing Finance Ltd – ₹97,000 Cr AUM and 0.28% NPA: The “Clean Freak” of Housing Finance
1. At a Glance
Bajaj Housing Finance Ltd (BHFL) is the neat freak of India’s lending circus. With gross NPAs of just 0.28% and net NPAs at 0.11%, their loan book is cleaner than your mother’s kitchen right after Diwali ki safai. They’ve built a ₹97,071 Cr AUM empire within just seven years, making them the second-largest HFC, all while flexing a 29%+ profit growth. But the market? It values them at 42× earnings, because apparently “low NPA” is the new Gucci.
2. Introduction
Let’s be honest: the housing finance sector is usually messy—LIC Housing and PNB Housing are busy cleaning up NPAs, while smaller HFCs often drown in developer defaults. Enter Bajaj Housing Finance, the overachieving kid of Bajaj Finance Ltd (aka India’s favourite NBFC brand).
Born in 2008 but registered with NHB in 2015, BHFL has become the go-to lender for salaried middle-class families with decent CIBIL scores (75%+ of their book). While competitors chase risky segments, BHFL plays it safe with home loans (57.5% of AUM) and lease rental discounting (19.5%).
And let’s not forget: this is a Bajaj company. That means deep pockets, no-nonsense branding, and the ability to raise thousands of crores through NCDs like they’re refilling their PayTM wallet. In FY24, they were already the 2nd most profitable HFC in India—right behind HDFC Ltd, before it merged into HDFC Bank.
Would you trust a company that claims “zero NPAs” while lending to developers? Or is this actually the poster child of discipline in an industry addicted to bad loans?
3. Business Model – WTF Do They Even Do?
BHFL’s menu card is fairly straightforward:
Home Loans (57.5%) – The bread and butter. Average ticket size ₹46 lakh. Mostly salaried folks in metros. This is the “safe” side of lending.
Loans Against Property (10%) – Your house becomes your ATM. Average ticket ₹59 lakh. Riskier than home loans, but juicier margins.
Lease Rental Discounting (19.5%) – Loans against future rental income. Basically, “we’ll give you money today if your tenant keeps paying tomorrow.”
Developer Financing (12%) – The real masala. Lending to builders. This part keeps regulators awake at night.
The beauty? 87% of home loan borrowers are salaried, and 75% have CIBIL scores >750. In other words, BHFL lends only to the “log-in-log-out” salaried army.
So what’s the catch? High concentration—32% of AUM is in Maharashtra and 23% in Karnataka. If Bengaluru IT bros stop paying EMIs, BHFL’s book could wobble like a drunk uncle at a shaadi.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun 2025)
YoY Qtr (Jun 2024)
Prev Qtr (Mar 2025)
YoY %
QoQ %
Revenue
2,616
2,209
2,508
18.4%
4.3%
EBITDA
765
640
731
19.5%
4.6%
PAT
583
483
587
20.9%
-0.7%
EPS (₹)
0.70
0.62
0.70
12.9%
0%
Commentary: Unlike many HFCs, PAT actually keeps pace with revenue. EPS flat QoQ but up YoY. Basically, no drama, just consistent delivery.
5. Valuation – Fair Value Range Only
P/E Method: EPS (₹2.72 annualized) × Industry PE (18–25) → ₹49 – ₹68 fair range. Current P/E of 42 suggests froth.
EV/EBITDA: FY25 EBITDA ₹2,937 Cr. Apply 15×–20× → EV ₹44,000–₹59,000 Cr. Subtract net debt (₹82,072 Cr – negligible cash) = Equity value wiped to ~negative, but market ignores because Bajaj parentage. Adjusted per share: ₹60–₹85.
Fair Value Range: ₹60 – ₹110 Disclaimer: For educational purposes only, not investment advice.
6. What’s Cooking – News, Triggers, Drama
IPO: In September 2024, BHFL raised ₹6,560 Cr. Fresh issue of ₹3,560 Cr used to boost capital base. Post-IPO, they became a ₹90,000+ Cr giant overnight.
Bond Issuances: In May–June 2025 alone, they raised over ₹5,300 Cr via NCDs at ~7% coupons. Clearly, debt markets love Bajaj signatures.
