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Bajaj Housing Finance Ltd (BHFL) made a striking debut by listing at INR 150, reflecting a 114% gain from its issue price of INR 70. While short-term profit-taking is likely, many analysts believe it remains a solid long-term investment due to its strong fundamentals and growth history. The IPO raised INR 6,560 crore and was oversubscribed 67 times, driving its high initial price.
However, Home First Finance presents a compelling alternative. Trading at INR 1,268 with a market cap of ₹11,311 crore and a P/E ratio of 34, it boasts impressive growth metrics: a profit growth of 46.2% CAGR over the past five years and median sales growth of 53.4% over the last decade. Additionally, the company has improved its working capital efficiency, reducing its working capital days from 19.1 to 14.7.
While BHFL has a strong pedigree, its high valuation and market cap might limit long-term growth potential compared to Home First Finance, which appears to have more room for expansion. Both companies have their merits, but investors should carefully consider these factors when making long-term decisions. Keeping an eye on Home First Finance could be wise, especially given its favorable growth outlook and reduced capital requirements.
