Bajaj Housing Finance’s Market cap has now exceeded more than its competitors.
Here’s a comparison of all the other key financials as well.
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In case of Housing Finance, BAJAJHFL doesn’t have the winning advantage because of the following factors:
(1) The cost of funds for BFL is way higher than banks. To make a decent amount of NIM in housing finance segment, it needs to dilute the quality of its portfolio.
(2) As we all know, real estate is a nexus. Developers only tie up with banks, which gives “something extra” to the developers. So, in all likely cases, large banks will still manage to get the incremental market share because they “collaborate” pretty well.
(3) Bajaj HFL lacks the distribution.
Coming to the share price, I usually prefer stocks that go up because of the underlying balance sheet and competitive advantages. Rather than stocks which go up, because of trading activities and relatively lesser underlying strength.
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