Cash News
Global brokerage firm Nomura has maintained a ‘Neutral’ stance on Bajaj Finance, with a price target of ₹7,500 per share.
Bajaj Finance’s pre-quarter update shows numbers are broadly in line, with credit costs being a key focus for Q2.
The foreign brokerage also said that any upward revision in FY25 credit cost guidance may be viewed negatively by the Street, and vice versa.
Another brokerage Morgan Stanley has an ‘Overweight’ rating on Bajaj Finance, with a price target of ₹9,000 per share. This implies a potential upside of 21% from the stock’s last closing levels on Thursday.
Bajaj Finance reported assets under management (AUM) growth of 5.6% quarter-over-quarter and 28.8% year-on-year, exceeding expectations.
During the Q2 call, attention will be on management’s outlook for asset quality improvements starting in Q3, as well as insights into future credit cost trends, the brokerage noted.
In an update, Bajaj Finance said its customer franchise stood at 92.09 million at the end of September quarter, compared with 76.56 million in the year-ago quarter. In Q2 of FY25, the NBFC added 3.88 million customers.
The company said its new loans booked surged 14% to 9.69 million in Q2FY25 as against 8.53 million in Q2FY24.
AUM grew 29% to approximately ₹3,73,900 crore as of 30 September 2024, compared to ₹2,90,264 crore as of September 30, 2023. AUM in Q2FY25 grew approximately ₹19,700 crore.
Bajaj Finance said its net liquidity surplus stood at approximately ₹20,100 crore as of September 30, 2024.
The company’s deposits book stood at approximately ₹66,100 crore as of September 30, 2024, compared with ₹54,821 crore as of September 30, 2023, a growth of 21%.
Bajaj Finance shares settled 3.71% lower at ₹7,417.60 on Thursday. The stock has delivered a flattish return so far this year against a 14% jump in the BSE Sensex during the same period.