Author: Sarita Jena

A brokerage called Kotak Institutional Equities has given Bajaj Housing Finance shares a ‘sell’ rating because they believe the stock is too expensive. They set a target price of Rs 100, which suggests that the stock could fall by 21%.

According to Kotak, Bajaj Housing Finance is trading at a high price—4.7 times its book value and 39 times its expected earnings for 2026. The brokerage predicts that the company will grow its earnings by 25% each year from 2024 to 2027, mainly due to a 24% growth in its assets. They also expect the company’s profit margins to stay steady and plan to manage costs carefully.

Bajaj Housing Finance is the second-largest home loan company in India, with Rs 91,400 crore in assets this year. They focus on lending to salaried workers who have good jobs. The company has been growing rapidly, with an expected growth rate of 24% for the next few years. Their loan types include home loans (58%), loans against property (10%), and loans for developers (11%).

Bajaj Housing Finance has kept its asset quality strong, with bad loans at just 0.3% this year, which is much better than many of its competitors. They have good strategies to keep credit risks low, focusing on safe borrowers and using smart technology for lending.

Despite these strengths, Kotak warns that there are risks involved, such as changes in interest rates and tough competition in the market. As of 1:30 PM today, the Bajaj Housing Finance stock was unchanged at Rs 126.50.

Dharmesh Shah from ICICI Direct shares his thoughts on the stock market’s recent performance. He believes that while there will be ups and downs, now is a good time to buy stocks when their prices dip. The dollar index has changed, and despite recent highs, he expects it to stabilize around 85.75.

This year has started brightly, with the Nifty 50 index rising by about 500 points. A key level of 23,900 has been broken, and he predicts the Nifty could rise to 24,500 soon. But January is known for its unpredictable nature, especially with earnings reports coming up and the US presidential transition affecting global policies.

In the automotive sector, recent positive sales numbers have surprised everyone. Stocks like Tata Motors and Maruti are bouncing back due to being previously undervalued. Among the auto stocks, Mahindra & Mahindra looks strong, with a target price of 3,350. Two-wheeler stocks like Eicher Motors are also promising, expecting to reach around 5,650. Additionally, tire companies like Ceat Tyres and JK Tyres should benefit from lower crude oil prices.

On the international front, the dollar index has been fluctuating. After the US election, it climbed to 109, but there’s a chance it might struggle to get past 110-111. If this happens, it could be good for Indian metal stocks, which have already been factoring in some bad news. Stocks like Tata Steel and JSW Steel are considered good options in the metal sector.

Shah also emphasizes the potential in the defense sector, with Hindustan Aeronautics (HAL) being a top pick due to its strong fundamentals and technical support. He anticipates a target price of 4,685 for HAL, with a stop-loss at 3,920.

Looking ahead, the infrastructure sector seems bright, especially with expectations of increased government spending. JK Cement is identified as a promising stock, with an anticipated target of 5,320.

There has always been a lot of talk about how people in cities and countryside spend money differently. But one thing we don’t often discuss is how these spending habits have changed over time.

For example, think about how people now order food. Years ago, most people would go to restaurants or cook at home. Today, many people use apps to order food online. This big change has created new businesses and job opportunities for delivery drivers, app developers, and restaurant partners.

This trend of changing how we consume goods is likely to stick around. Understanding it helps us see which companies are growing and which are struggling in both rural and urban areas.