Nomura has reaffirmed its ‘Buy’ rating on Bajaj Finance, raising its target price to ₹9,000, implying a potential upside of 16%. The brokerage cited the company’s steady Q3 FY25 performance, with net profit rising 18% year-on-year and 7% sequentially to ₹43 billion, supported by robust loan growth of 28% year-on-year and 6% quarter-on-quarter.
The reported PAT was 3% above Nomura’s estimates, primarily driven by lower-than-expected credit costs at 2.1% versus the projected 2.2%. Bajaj Finance’s operating profit stood at ₹78 billion, aligning with expectations and leading to a Return on Assets (RoA) of 4% and Return on Equity (RoE) of 19% in Q3 FY25.
With sustained loan growth momentum and improving asset quality, Nomura remains optimistic about Bajaj Finance’s long-term earnings potential, positioning it as a key player in the NBFC space.
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