Bajaj Finance has received an 'Underperform' rating from global brokerage firm Bernstein, with analysts setting a target price significantly below current market levels. The rating reflects the brokerage's cautious stance on the non-banking financial company's stock performance.

Rating and Price Target Details

Bernstein's analysis presents a bearish view on the stock with specific price projections:

Market Implications

The target price of ₹750.00 per share represents a substantial discount to the current market price of ₹950.00, suggesting Bernstein expects the stock to face headwinds in the near term. The 'Underperform' rating typically indicates that analysts expect the stock to perform worse than the broader market or sector peers over their coverage period.

This rating from Bernstein adds to the analytical perspectives available to investors considering positions in the financial services sector, particularly in the non-banking financial company space where Bajaj Finance operates.

Bajaj Housing Finance shares extended their losing streak on Thursday, January 8, closing lower for the third consecutive trading session. The stock, a subsidiary of Bajaj Finance, declined 1.02% to close at ₹94.91 on the NSE, continuing its recent downward momentum.

Stock Performance Overview

The housing finance company's shares have experienced a dramatic journey since their market debut. The stock initially made a strong entrance, opening at ₹150.00 against an IPO price of ₹70.00, representing a significant premium for early investors.

Recent Market Movement

After reaching its record high of ₹180.00, Bajaj Housing Finance shares have undergone a sharp correction. The current market price of ₹94.91 represents a decline of nearly 47% from the stock's peak performance levels.

The consecutive sessions of losses indicate sustained selling pressure on the stock. Thursday's 1.02% decline added to the recent weakness, with investors continuing to book profits or exit positions.

Current Market Position

At the prevailing market price, the stock is trading significantly below both its record high and its strong debut levels. The correction has brought the shares closer to their original IPO pricing, though they still maintain a premium over the initial offering price of ₹70.00.

The housing finance subsidiary's performance reflects the broader market dynamics and sector-specific factors affecting financial services companies. The stock's journey from a strong debut to the current correction phase highlights the volatility often seen in newly listed securities.