The Bajaj Housing Finance results for Q4 FY25 highlight a strong performance, with AUM growing 24-26% YoY, maintaining its medium-term guidance.
Asset quality remained stable, with reduced Stage 2 and 3 ratios across home loans and LAP, though credit costs rose to 20-25 bps.
Net interest margins compressed due to competition, but a diversified borrowing mix kept funding costs flat.
The company expects double-digit AUM and profit growth, targeting a 2-2.2% RoA.
However, at 4.3 times FY27 book value, the stock’s rich valuation prompts caution despite robust fundamentals.
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