Should I buy Reliance Home Finance stock in 2025?

What is Reliance Home Finance?

How much is Reliance Home Finance stock?

The price of Reliance Home Finance stock is rising this week. As of now, the stock is trading at ₹3.32 on NSE, reflecting a 0.61% gain over the past 24 hours and an 11.11% increase over the week.

Investors should note that Reliance Home Finance shares remain highly volatile, and price movements can be significant even over short periods.

Our full analysis on Reliance Home Finance stock

We have thoroughly reviewed Reliance Home Finance’s most recent financial results and have rigorously assessed its share-price evolution over the last three years. Employing our proprietary algorithms, which synthesize a wide array of financial indicators, technical signals, market data, and competitive comparisons, a multidimensional perspective on the stock emerges. In this context, what are the catalysts and market dynamics that may position Reliance Home Finance once again as a potentially strategic entry point into India’s fast-evolving housing finance sector in 2025?

Recent Performance and Market Context

Over the past few quarters, Reliance Home Finance (RHF) has exhibited a pattern of notable price and volume shifts—signals that often precede a change in market sentiment. As of May 19, 2025, the stock trades at ₹3.32 on the NSE, with a 52-week range between ₹2.15 and ₹5.80, suggesting both resilience and rebound potential. The past week alone saw an 11.1% climb, driven by renewed market attention around the firm’s fiscal discipline and speculation ahead of its upcoming board meeting. In a broader context, India’s financial sector—and specifically the housing finance subset—continues to benefit from enduring socio-economic tailwinds:

• Strong government focus on affordable housing under the Pradhan Mantri Awas Yojana (PMAY), which continues to deepen home loan demand in tier-II and tier-III cities.
• Supportive macro factors such as moderating interest rates, a young working-age population, and consistent urbanization trends.
• Sectoral momentum: Housing finance stocks have generally outperformed financial sector averages in periods of policy support or rate announcements.

These dynamics cultivate an environment that favours a re-rating of selective underdogs within the space.

Technical Analysis

From a technical standpoint, RHF currently demonstrates a compelling short-term reversal structure:

• RSI (14-day) of 53: The stock sits in a neutral position, avoiding the excesses of overbought territory and providing room for rallies.
• MACD: Positive divergence and mild bullish momentum, often a precursor to sustained price up-moves.
• Moving averages: The share price currently trades above the 20-day and 50-day moving averages (₹3.30), confirming short-term bullishness, yet is below the 200-day MA (₹3.60), indicating a long-term discount that presents a tactical entry for patient investors.
• Support levels at ₹3.25, ₹3.19, and ₹3.14: These act as potential accumulation zones, where prior buyers showed conviction.
• Immediate resistance at ₹3.36 and secondary at ₹3.47: A successful breakout here could ignite fresh upside momentum.
• High beta (2.56): The stock is primed for pronounced moves upon any incremental positive news flow, ideal for active traders seeking volatility.

This technical setup points towards a stock in transition—emerging from consolidation and well-placed for medium-term upside upon breach of immediate resistance levels.

Fundamental Analysis

Reliance Home Finance’s fundamentals remain at an inflection point, yet several factors justify a more optimistic outlook:

• Revenue stabilization and narrowing losses: While Q3 FY2025 revenue was muted, the company has demonstrated a significant reduction in net losses (₹1.92 crore vs. ₹2.56 crore YoY), illustrating effectiveness in cost containment and risk management. FY2024’s net result also reflected exceptional restructuring gains.
• Debt reduction: The company’s meaningful deleveraging signals enhanced operational stability—historically a precursor to a rebound in investor confidence and future capital raise optionality.
• Attractive valuation: At a P/E ratio of 8.92, the stock trades at a material discount relative to sector averages, especially compelling given RHF’s scope for operational normalization.
• Asset-light growth vectors: Management’s emphasis on a digital lending platform positions RHF to capture demand from underserved borrower segments, leveraging fintech for enhanced asset quality and operational efficiency.
• Brand recognition: Despite recent governance concerns, the “Reliance” brand maintains valuable recall—especially in semi-urban geographies where trust and legacy play a role in client selection.

While the balance sheet reflects legacy headwinds, the accelerated pace of management action—and visible proactivity around reduction of contingent exposures—suggests that fundamentals are converging towards a reset.

Volume and Liquidity

Trading liquidity is a decisive signal of institutional and retail confidence. RHF’s average daily trading volume of nearly 4 million shares underscores:

• Substantial market participation, providing ample liquidity for sizeable positions without significant price slippage.
• Active float: With about 97.7% of shares held by the public, the stock enjoys democratized ownership, enhancing the potential for dynamic revaluations during positive news cycles.
• Sustained interest: Volume trends have matched or exceeded price spikes, suggesting that upward movements are supported by broad-based interest rather than speculative pockets.

In sum, robust liquidity combined with high volatility increases the probability of outsized moves in response to positive triggers.

Catalysts and Positive Outlook

Despite historic headwinds, several forward-looking factors paint a positive scenario:

• Upcoming Results: The scheduled May 22, 2025 board meeting creates immediate anticipation for improved audited financials or strategic announcements. Such events often act as catalysts for price discovery.
• Debt restructuring gains: Continued success in deleveraging could translate into improved credit ratings and unlock access to new funding channels.
• Digital transformation: Rollout of the digital lending platform positions the company to tap emerging demand, lower acquisition costs, and operate with greater agility in a crowded space.
• Sectoral dynamics: The Government of India’s unrelenting push for “Housing for All” through PMAY keeps sector growth robust, supporting medium-term demand for home finance.
• Potential regulatory relief and settlements: A favourable outcome on insolvency proceedings or policy-level support for NBFCs could serve as substantial upside triggers.
• ESG and innovation: As the market increasingly values ESG-aligned business models, RHF’s advances in digitization and potential focus on green home loans may resonate with the next generation of investors.

Together, these catalysts suggest that RHF is strategically positioned to harness sectoral tailwinds and internal efficiencies for accelerated growth.

Investment Strategies

Given RHF’s current technical and fundamental profile, multiple investment strategies are supported by the data:

Short-Term Opportunities

• Entering near current levels (₹3.30–₹3.36) may offer tactical gains, especially with an eye on the approaching financial results announcement.
• Support zones around ₹3.25 offer risk-managed accumulation opportunities, with quick swing upside to ₹3.41–₹3.47 on positive momentum.

Medium-Term Positioning

• Hold positions as signs of operational stabilization and continued debt reduction unfold, targeting a re-rating towards the ₹3.60 (200-day MA) and potentially ₹4.00.
• Monitor volume spikes and price behavior around resistance levels to add on breakout confirmation.

Long-Term Considerations

• Emphasize the high-volatility, high-risk/high-reward nature of RHF within a diversified portfolio, especially as new digital ventures and macroeconomic catalysts could unlock multi-quarter upside.
• Ideal for investors seeking deep-value contrarian plays in the housing finance sector, with upside leveraged to turnaround execution.

In summary, layered positioning—with disciplined risk management—can be adapted as RHF navigates its next phase.

Is It the Right Time to Buy Reliance Home Finance?

While historical financials reveal legacy challenges, the stock’s confluence of technical resilience, renewed volume participation, accelerated debt reduction, and an imminent catalyst window combine to create a powerful case for reassessment. The current pricing reflects much of the downside, and with the sector’s tailwinds gathering momentum, Reliance Home Finance seems to represent an excellent opportunity for investors seeking exposure to high-beta, event-driven housing finance names.

The fundamentals justify renewed interest, as structural improvements align with favourable sectoral dynamics—a combination that may precipitate a new bullish phase if upcoming board actions or regulatory clarity materialize in RHF’s favour.

In this context, RHF stands out as a bold but potentially rewarding contrarian pick within the Indian housing finance sector, ideally suited for opportunistic portfolios seeking asymmetric upside. As the company approaches a pivotal juncture, the convergence of technical momentum and sector catalysts could make this the strategic entry point that forward-looking investors will look back on with conviction.

How to buy Reliance Home Finance stock in IN?

Buying Reliance Home Finance stock online is both simple and secure when you go through a regulated broker in India. Today, investors can choose between two main methods: purchasing shares outright (“spot buying”) or trading via Contracts for Difference (CFDs), each with its own features, fees, and benefits. Whether you want to own part of the company directly or prefer to speculate on price changes with leverage, these methods cater to all profiles. If you’re deciding which approach and broker best suits your needs, make sure to review the detailed broker comparison further down this page.

Spot Buying

When you buy Reliance Home Finance shares for cash, you become a direct shareholder in the company. This traditional purchase is done through a SEBI-regulated broker on the NSE or BSE stock exchange. Typical fees for spot buying are relatively modest in India—a fixed commission per order, often ranging from ₹20 to ₹30 per trade, plus government taxes.

Example with a ₹85,000 (approx. $1,000 USD) stake

If Reliance Home Finance shares are trading at ₹3.32 per share, your ₹85,000 (minus a typical ₹400 brokerage fee) lets you buy approximately 25,600 shares ((₹85,000 - ₹400) / ₹3.32 ≈ 25,600 shares).

• Gain scenario: If the share price rises by 10% to ₹3.65, your shares are now worth ₹93,440 (25,600 × ₹3.65).

Result: That’s a ₹8,540 gross gain, or +10% on your initial investment before taxes and fees.

Trading via CFDs

Trading Contracts for Difference (CFDs) on Reliance Home Finance allows you to speculate on the share price, without owning the actual shares. CFDs are available on select platforms regulated by SEBI and allow the use of leverage, typically multiplying your exposure by up to 5x. Key costs include the spread (the difference between buy and sell price) and overnight financing fees if you hold positions beyond a day.

Example with a ₹85,000 stake and 5x leverage

You enter a CFD trade with ₹85,000, giving you exposure to ₹425,000 worth of shares (₹85,000 × 5).

• Gain scenario: If the stock price rises by 8%, the value of your position also rises 8%, but your leveraged gain is 8% × 5 = 40%.

Result: That’s a ₹34,000 gain on a ₹85,000 initial margin (excluding fees).

Final Advice

Before investing, always compare the fees, available leverage, margin requirements, and additional conditions across different brokers—these affect your net results. Remember, spot buying suits investors seeking direct ownership, while CFDs are designed for those comfortable with leverage and higher risk. Your ideal method depends on your financial goals and risk appetite. Check our comprehensive broker comparison below to support your decision and invest confidently in Reliance Home Finance.

Our 7 tips for buying Reliance Home Finance stock

The latest news about Reliance Home Finance

Reliance Home Finance scheduled a board meeting for May 22, 2025, to approve audited FY25 results. This upcoming meeting will provide the latest comprehensive financial disclosures and management commentary, likely offering fresh insights into the company’s current financial health and strategic roadmap. Market participants are expected to closely analyze these results, as audited figures could impact sentiment and guide short-term stock movements for Indian investors.

The stock posted a robust 11.11% gain over the last week, sustaining price above short-term averages. Recent momentum reflects a mild but constructive technical trend, with the price trading above its 20-day and 50-day moving averages, and a neutral RSI at 53. The stock’s MACD also signals mild bullishness, suggesting that, despite persistent volatility, traders are responding to a favorable technical setup. This short-term positive behavior provides an encouraging signal amid broader sector volatility.

The company continued its debt reduction efforts, enhancing prospects for future financial stability. Reliance Home Finance’s focused deleveraging, confirmed by official disclosures, is an important constructive development. Lower leverage reduces financial risk and improves the company’s resilience, particularly relevant in India’s competitive and fast-evolving housing finance sector. Such progress is positively regarded by the market, supporting long-term recovery efforts and underlining management’s commitment to restoring balance sheet health.

The Indian government’s ongoing push for affordable housing and supportive sector dynamics remain tailwinds. Reliance Home Finance, through its dedicated focus on various housing finance products, stands to benefit indirectly from continuing national initiatives to boost affordable housing. Measures to enhance housing access, combined with potential future reductions in interest rates, create a more favorable operating environment for housing finance companies, sustaining long-term value propositions in India.

Despite weak recent revenues, the Q3 FY25 net loss narrowed year-on-year, reflecting some operational improvement. Although overall financial performance remains challenged—with revenue sharply down year-over-year—the company reported a reduced net loss of ₹1.92 crore compared to ₹2.56 crore in the same period a year ago. This narrowing of losses signals incremental management progress in cost containment and operational efficiency, offering a cautiously positive data point for analysts focused on turnaround potential.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.