Bajaj Finance share price rallied over 4% in early trade on Thursday after the company reported its Q3 results. Bajaj Finance shares gained as much as 4.52% to ₹8,108.90 apiece on the BSE.
The largest NBFC India, Bajaj Finance reported a 17% growth in consolidated net profit for the third quarter of FY25 at ₹4,247 crore as against ₹3,639 crore in the year ago period.
The net interest income (NII) in Q3FY24 increased by 23% to ₹9,382 crore from 7,655 crore, year-on-year (YoY).
Bajaj Finance’s Assets under management (AUM) grew by 28% to ₹398,043 crore as of 31 December 2024 from ₹310,968 crore as of 31 December 2023. The number of new loans booked in Q3FY25 was highest ever at 12.06 million as against 9.86 million in Q3FY24, a growth of 22%.
The NBFC’s gross non-performing assets (GNPA) rose to 1.12% in Q3FY25 from 0.95% a year earlier, while Net NPA rose to 0.48% from 0.37%. The provisioning coverage ratio on stage 3 assets stood at 57%.
Provisions for loan losses increased to ₹2,043 crore in Q3FY25 from ₹1,248 crore a year ago. Loan losses and provisions stood at 2.16% of average assets under finance.
Should you buy Bajaj Finance shares?
“Bajaj Finance logged a strong quarter, with PAT of ₹43 billion exceeding consensus and our estimates by ~6% and ~3%, respectively. Credit costs were stable sequentially at ~2.1%, with the management expecting improvement in Q4 due to better collection efficiency observed in December 2024 and January 2025, and maintained full-year FY25 guidance at 2-2.1%,” said Avinash Singh, Senior Research Analyst at Emkay Global Financial Services Ltd.
Given its strong financials — with ~4% RoA, above-20% RoE, and sustained earnings growth above 20% — and incorporating the Q3 developments and management insights, Emkay Global revised its FY25-27 estimates, leading to a ~2.5% upward revision in earnings.
The brokerage firm reiterated a ‘Buy’ rating on Bajaj Finance stock, and raised its December target price by 5% to ₹8,800 per share from ₹8,400 earlier, implying FY26E P/BV of 5.2x on a standalone basis.
Bajaj Finance share price has gained 17% in one month and more than 18% in six months. The stock has rallied 35% in two years.
At 9:20 AM, Bajaj Finance shares were trading 3.51% higher at ₹8,030.45 apiece on the BSE.
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