Shares of Bajaj Finance and Bajaj Finserv surged up to 2.5% on January 6, 2025, with Bajaj Finance closing at Rs 7,599 and Bajaj Finserv at Rs 1,732 per share. The rally followed the company’s robust October-December quarter (Q3FY25) performance, reflecting strong business momentum and investor confidence.
Key Highlights from Bajaj Finance Q3FY25
- Impressive AUM Growth:
- Assets Under Management (AUM): Rs 3.98 lakh crore, a 28% YoY increase from Rs 3.10 lakh crore.
- Record New Loan Bookings:
- New Loans Booked: 12.06 million, a 22% YoY increase from 9.86 million.
- Robust Deposit Growth:
- Deposit Book: Rs 68,800 crore, a 19% YoY increase from Rs 58,008 crore.
- Customer Base Expansion:
- Total Customers: 97.12 million, marking the largest-ever quarterly addition of 5.03 million new customers.
Brokerage Insights
- Bank of America (BofA):
- Rating: Buy
- Target Price: Rs 8,800
- Highlights robust growth in new loans and customer acquisition.
- JPMorgan:
- Rating: Overweight
- Target Price: Rs 7,300
- Projects a 29% CAGR growth in AUM over the next three years. Notes strong performance but advises caution over broader industry cycles.
- Citi:
- Rating: Buy
- Target Price: Rs 8,150
- Places Bajaj Finance on a 90-day positive catalyst watch, citing proactive risk management and revised credit cost guidance of 2.05% for FY25.
Stock Performance
| Stock | Price (Jan 6, 2025) | Monthly Performance | Comparison with Nifty 50 |
|---|---|---|---|
| Bajaj Finance | Rs 7,599 | +10% | Nifty: -2% |
| Bajaj Finserv | Rs 1,732 | +4% | Nifty: -2% |
Strategic Insights
- Continued Market Leadership:
Bajaj Finance remains one of the top-performing Non-Banking Financial Companies (NBFCs), showcasing resilience and growth despite a volatile market environment. - Proactive Risk Management:
The company’s focus on reducing exposure in vulnerable segments and revising credit cost guidance reflects prudent financial planning. - Customer-Centric Growth:
The significant customer base expansion to 97.12 million demonstrates its ability to attract and retain clients through innovative offerings and superior customer service.
Conclusion
Bajaj Finance’s strong Q3FY25 results underline its position as a market leader in the financial sector. With record-breaking loan bookings, substantial AUM growth, and continued customer acquisition, the company is poised for sustained growth. Positive ratings from major brokerages further reinforce investor confidence.
Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Please consult a financial advisor before making investment decisions.
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