Bajaj Finance shares trade flat with negative bias as UBS maintains 'sell'

Shares of the NBFC company Bajaj Finance traded in the red by 0.35 per cent at Rs 7265.25 per share on the BSE even as global brokerage UBS iterated its 'sell' view on the stock with a target price of Rs 6800, a potential downside of 7 per cent over the previous close.

The brokerage maintains that the potential listing of Bajaj Finance subsidiary Bajaj Housing Finance (BHFL) will not add considerable value. Instead, if investors look at Bajaj Finance on a stand-alone basis, they believe business profile would look weaker, with a high share of unsecured loans. (70% vs 50% consol)

Stand-alone earnings profile would also look weaker, with a lower FY24-26E EPS CAGR of 17 per cent versus 19 per cent consolidated.

There would also likely be a holding company discount for BHFL's market price, it added.

Earlier, PhillipCapital anticipated that Bajaj Finance's subsidiary, Bajaj Housing Finance (BHFL), will likely debut on exchanges in September 2025 with an expected listing price of Rs 550-570 per share.