Bajaj Finance shares saw a surge of nearly 4% as company posted a robust performance in Q2 FY25, with a 13% year-on-year (YoY) growth in net profit to ₹4,014 crore. The company’s Net Interest Income (NII) surged by 23% YoY, reflecting strong growth in its lending business. This solid performance was driven by sustained demand for consumer loans and financial services, positioning Bajaj Finance as a stock to watch in the financial services sector.
As of 9:19 am the shares were trading 3.30% higher at ₹6,898.35 on NSE
Key Financial Metrics:
- AUM Growth: Assets under management (AUM) grew by 29% year-on-year (YoY) to ₹3.73 lakh crore. The company expects AUM growth of 27-28% for FY25.
- Mortgages: Contributed the most to AUM at ₹1.15 lakh crore, up 27% YoY.
- Urban B2C Loans: Increased by 33% YoY to ₹77,239 crore.
- SME Lending: Up by 10% YoY to ₹44,382 crore.
- Two and Three-Wheeler Finance: Grew 15% YoY to ₹18,960 crore.
- Rural B2C Loans: Saw a modest 10% YoY growth to ₹18,815 crore.
Analysts’ Views:
- JPMorgan: Maintained an “overweight” rating but reduced the target price to ₹7,300 from ₹8,000 due to concerns about credit overshoot and asset quality strain in Q2 FY25.
- Jefferies: Retained a “buy” rating with a target price of ₹8,400, indicating a 26.4% upside. Jefferies highlighted Bajaj Finance’s strong 29% YoY AUM growth and expects earnings growth to exceed 20% by FY26 if credit costs stabilize.
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