Bajaj Housing Finance shares listing on Monday; Should IPO investors hold or book
profits?
The Bajaj Housing Finance IPO has generated significant interest, with strong fundamentals and impressive subscription figures across investor categories. Given the historical performance of Bajaj Group stocks and the potential upside, your analysis suggests a balanced strategy. Here are some key points to consider when deciding whether to hold or book profits:
Reasons to Hold:
1. Strong Fundamentals: The company’s assets have grown significantly, along with its profits (PAT). These indicate solid financial health and long-term growth potential.
2. Potential Multi-bagger: Bajaj Group’s past performance hints at the potential for this stock to deliver substantial returns in the long run.
3. Growth Potential: The IPO has been priced with a P/E of 31.62, which could rise after listing, offering more growth opportunities.
Reasons to Book Partial Profits:
1. Debt Levels: The company’s debt has grown substantially alongside its asset base. While manageable now, higher debt could become a concern if market conditions change.
2. Initial Price Surge: If the stock lists within the Rs. 140-152 range, early investors may see a decent price bump, providing an opportunity to lock in profits.
3. Over-subscription and Hype: The high subscription rate may lead to an initial surge in stock prices driven by demand, which can provide a good short-term exit for part of the investment.
Suggested Strategy:
Your advice to book 50% profits is wise, especially for investors seeking to balance risk and reward. Retaining some shares for the long term makes sense given the potential multi-bagger status, while booking partial profits helps hedge against market volatility.
Would you like to go deeper into price targets, or any further technical analysis for Bajaj Housing Finance?
This a review based on overall price action, Market Conditions and available inflation on Public palatiform said VLA Ambala SEBI regd. RA
Disclaimer: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis. Stay cautious and keep an eye on key levels and upcoming budget announcements to adjust your strategies accordingly
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This analysis and recommendations are provided by SEBI registered research analyst VLA Ambala.
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