Bajaj Housing Finance share price extends decline; stock cracks 11% in two days amid profit booking

Bajaj Housing Finance share price extended decline for the second straight session on Thursday, falling more than 7% amid profit booking at higher levels. Bajaj Housing Finance shares plunged as much as 7.3% to ₹161.00 apiece on the BSE.

Today's fall in Bajaj Housing Finance stock price comes after a 4.3% drop witnessed in the previous session. With this, Bajaj Housing Finance shares have fallen more than 11% in two trading sessions, followed by two sessions of healthy gains after listing.

The newly listed Bajaj Housing Finance shares hit a high of ₹188.45 apiece, taking its market capitalization to more than ₹1.5 lakh crore on September 18.

Bajaj Housing Finance shares made a stellar stock market debut on September 16 as the stock was listed at ₹150 per share, a premium of over 114% to the issue price of ₹70 apiece.

Should you book profit?

Bajaj Housing Finance stock came under selling pressure at higher levels on Thursday as investors opted for profit booking amid high valuations. Analysts believe Bajaj Housing Finance IPO investors may book profit after the recent surge in the stock price.

“Bajaj Housing Finance shares are likely to witness short-term profit booking after the rally post strong listing. While the long-term prospects of the company and housing finance industry in India are good, the price sustainability for Bajaj Housing Finance stock will take time,” said Avinash Gorakshakar, Head of Research at Profitmart Securities.

Gorakshakar believes the valuations of Bajaj Housing Finance shares look expensive at FY24 earnings.

He advises IPO investors should book part profit in their holdings of Bajaj Housing Finance shares, while suggesting that ₹150 - 155 levels may be good entry levels for new investors.

At 10:10 am, Bajaj Housing Finance shares were trading 5.83% lower at ₹163.56 apiece on the BSE. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.