News

JPMorgan is bullish, neutral and bearish on these three housing financiers; Check price targetsJPMorgan wrote in its note that the system mortgage should grow between 8% - 10% over the next three to five years, which has come off to 9% in February 2026 compared to 11% in the last three years.By Shloka Badkar  April 13, 2026, 9:44:47 AM IST (Published)2 Min ReadShares of housing finance companies, LIC Housing Finance Ltd., PNB Housing Finance Ltd., and Bajaj Housing Finance Ltd., fell as much as 3.5% on Monday, April 13, after brokerage firm JPMorgan initiated coverage on these stocks with different recommendations.

JPMorgan has initiated coverage with an 'overweight' rating on PNB Housing Finance Ltd. with a price target of ₹1,000 per share, implying an upside potential of 15.6% from its previous close.

The brokerage has also initiated coverage with an "underweight" rating on Bajaj Housing Finance Ltd. with a price target of ₹70 apiece, indicating a potential downside of 18.5%. The ₹70 price target is also the stock's issue price.

Meanwhile it has assumed coverage with a "neutral" rating on LIC Housing Finance Ltd. with a price target of ₹580 per share, indicating an upside potential of 9%.

JPMorgan wrote in its note that the system mortgage should grow between 8% - 10% over the next three to five years, which has come off to 9% in February 2026 compared to 11% in the last three years. It said the slowdown is in-line with declining residential sales, which fell 6.4% in February 2026.

Lenders with strong liability franchise (PSU Banks) or distribution (select housing finance companies) have been gaining market share, which should continue, JPMorgan said.

Intense competition in prime mortgages by PSU Banks suggests profitability is close to peak and is forcing housing finance companies to explore growth in high yield segments, as per the brokerage.

JPMorgan said it prefers housing finance firms with strong underwriting, low cost distribution and ability to deliver market share gains.

Bajaj Housing Finance stands out in this aspect, according to the brokerage. However, its 233% price-to-book and 225% price-to-earnings premium to peers for similar profitability seems unsustainable.

It added that PNB Housing Finance is in the early years of its turnaround and offers growth at a reasonable price.

On the other hand, LIC Housing Finance may continue to lose market share and lacks immediate catalysts, but low valuations limit the downside potential for the stock, JPMorgan said.

Shares of PNB Housing Finance, Bajaj Housing Finance and LIC Housing Finance were trading 2.7% to 3.1% lower during Monday's trading session.

Also Read: 'Concerns Overdone': Eternal shares are down 15% in 2026 but Goldman sees stock at ₹350Continue ReadingTagsBajaj Housing Financebrokeragehousing finance companiesJPMorganLIC Housing FinancePNB Housing Financeshare market today