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Bajaj Finance shares will be in focus on Wednesday after the company reported a 13% jump in its net profit for the quarter ended September 2024 to Rs 4,000 crore compared to Rs 3,551 crore posted in the year-ago period. It was below the Street estimates of Rs 4,070 crore. The revenue from operations for the reported quarter stood at Rs 17,090 crore, up 28% over Rs 13,382 crore posted in the corresponding quarter of the previous financial year.
The net interest income (NII) increased by 23% in Q2FY25 to Rs 8,838 crore from Rs 7,196 crore in Q2FY24. The number of new loans booked grew by 14% in Q2FY25 to 9.69 million against 8.
53 million in Q2FY24. Assets under management (AUM) grew by 29% to Rs 3,73,924 crore as of September 30, 2024, from Rs 2,90,264 crore as of 30 September 2023. AUM advanced by Rs 19,732 crore in Q2FY25.
Meanwhile, the loan losses and provisions for Q2FY25 were at Rs 1,909 crore against Rs 1,077 crore in Q2 FY24. Gross NPA and Net NPA as of 30 September this year stood at 1.06% and 0.
46%, respectively, against 0.91% and 0.31% as of 30 September 2023.
The provisioning coverage ratio on stage 3 assets was 57%. Stock Trading Dow Theory Made Easy By - Vishal Mehta, Independent Systematic Trader View Program Stock Trading Technical Trading Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Mastering Options Selling: Advanced Strategies for Success By - CA Manish Singh, Chartered Accountant, Professional Equity and Derivative Trader View Program Stock Trading Options Trading Made Easy: Options Trading Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading Algo Trading Made Easy By - Vivek Gadodia, Partner at Dravyaniti Consulting and RBT Algo Systems View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Options Trading Course For Beginners By - Chetan Panchamia, Options Trader View Program Stock Trading A2Z of Stock Trading - Online Stock Trading Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Options Scalping Made Easy By - Sivakumar Jayachandran, Ace Scalper View Program Stock Trading RSI Trading Techniques: Mastering the RSI Indicator By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Derivative Analytics Made Easy By - Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets View Program Stock Trading Cryptocurrency Made Easy: Cryptocurrency Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Point & Figure Chart Mastery: A Comprehensive Trading Guide By - Mukta Dhamankar, Full Time Trader, 15 Years Experience, Instructor View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder- Indiacharts.
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JPMorgan expects margins to stabilize as funding costs peak, though it notes that the business mix will likely remain adverse. Jefferies Jefferies has maintained a 'Buy' rating on Bajaj Finance but reduced the target price to Rs 8,400 from Rs 8,620. The Q2 results were in line with expectations, and earnings growth is projected to improve from FY26.
Credit costs remain high, but management expects a decline by FY26. Asset growth remains healthy, supported by stable net interest margins (NIMs). Jefferies views the company's valuations as reasonable, with a price-to-book (PB) ratio of 3.
8x and a price-to-earnings (PE) ratio of 20x for FY26. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
