Bajaj Finance Ltd Share Price – NSE /  BSE

Finance, Mid Cap

The consolidated results of Bajaj Finance include the results of its wholly owned subsidiaries, Bajaj Housing Finance (BHFL), Bajaj Financial Securities (BFinsec) and its associate company, Snapwork Technologies.

Operating expenses rose 20.81% to Rs 3,639 crore in Q2 FY25 as compared with Rs 3,012 crore posted in the corresponding quarter last year.

Net interest income jumped 23% to Rs 8,838 crore for Q2 FY25 from Rs 7,196 crore in Q2 FY24. Operating expenses to net interest income for Q2 FY25 was 33.2% as against 34% in Q2 FY24.

Loan losses and provisions during the quarter amounted to Rs 1,909 crore (up 77.25% YoY).

Profit before tax in Q2 FY25 stood at Rs 4,014 crore, up 13.03% from Rs 3,551 crore posted in Q2 FY24.

Number of new loans booked during the quarter grew by 14% to 9.69 million as against 8.53 million in Q2 FY24.

Customer franchise stood at 92.09 million as of 30 September 2024 as compared to 76.56 million as of 30 September 2023, a growth of 20%. The company's customer franchise grew by 3.98 million in Q2 FY25.

The NBFC’s consolidated deposits book jumped 21% YoY and stood at Rs 66,131 crore as of 30 September 2024.

Assets under management (AUM) grew by 29% Rs 3,73,924 crore as of 30 September 2024 from Rs 2,90,264 crore as of 30 September 2023. AUM grew by 19,732 crore in Q2 FY25.

On the asset quality front, gross NPA and net NPA as of 30 September 2024 stood at 1.06% and 0.46% respectively, as against 0.91% and 0.31% as of 30 September 2023. The company has provisioning coverage ratio of 57% on stage 3 assets as of 30 September 2024.

Capital adequacy ratio (including Tier-II capital) as of 30 September 2024 was 21.69%. The Tier-I capital was 20.90%.

The NBFC's annualized return on average assets (ROA) stood at 4.5% in Q2 FY25 as compared with 5.2% reported in Q2 FY24. Return on average equity (ROE) stood at 19.1% in the second quarter of FY25 as compared with 24.1% posted in Q2 FY24.

On half year basis, the NBFC’s consolidated net profit jumped 13.42% to Rs 7,925.72 crore on 28.57% rise in total income to Rs 33,197.72 crore in H1 FY25 over H1 FY24.

Bajaj Finance is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services.

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Net profit of Bajaj Finance rose 12.64% to Rs 3999.73 crore in the quarter ended September 2024 as against Rs 3550.80 crore during the previous quarter ended September 2023. Sales rose 27.49% to Rs 16736.58 crore in the quarter ended September 2024 as against Rs 13127.97 crore during the previous quarter ended September 2023.

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Moody's Ratings stated that BFL's ratings consider its strong and entrenched franchise as the largest retail oriented non-bank finance company (NBFC) in India with a sizable customer base and distribution network; its diversified loan book, which supports its high risk-adjusted profitability; its capitalization; and its competitive funding costs.

These strengths are counterbalanced by the company's focus on riskier unsecured consumer and small business loans, which are susceptible to higher credit costs during economic duress, and its reliance on wholesale funding.

BFL will likely continue gaining market share and further augmenting its already sizable franchise with consolidated assets under management of INR3.5 trillion (US$42 billion) as of June 2024.

Moody's expects the company to maintain its two-pronged strategy of having a mix of secured lending and unsecured lending. BFL's strong loan diversification gives it flexibility to calibrate loan growth depending on the prevailing asset quality trends in the respective segments.

The diversification also helps in asset-liability management via a judicious mix of short- and long-term loan assets. Apart from product diversification, the company has substantial geographical and customer diversification.

Although BFL's sizable unsecured lending exposes it to economic shocks, the company has employed various risk management processes to ensure adequate risk-adjusted returns. BFL's secured loans have experienced low charge-offs over the years.

Like its industry peers, BFL relies on wholesale sources for its funding needs to a large extent. As of June 2024, its funding mix comprised domestic bonds (35%), bank loans (28%), term deposits (21%) and others. The company's cost of funds is among the lowest compared with all privately owned Indian NBFCs.

BFL's funding and liquidity access also benefit from the company being a part of the large and well-known Bajaj Group.

Bajaj Finance is one of India’s leading and most diversified financial services companies. The company is mainly engaged in the business of lending. BFL has a diversified lending portfolio across retail, SME and commercial customers with a significant presence.

The non-banking financial company (NBFC) reported 13.82% increase in consolidated net profit to Rs 3,911.98 crore on a 24% jump in total income to Rs 10,418 crore in Q1 FY25 as compared with Q1 FY24.

The scrip shed 0.03% to currently trade at Rs 6902 on the BSE.

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Bajaj Finance Ltd dropped for a fifth straight session today. The stock is quoting at Rs 6894.05, down 0.9% on the day as on 13:19 IST on the NSE. The benchmark NIFTY is down around 0.8% on the day, quoting at 24772.15. The Sensex is at 81032.19, down 0.58%.Bajaj Finance Ltd has eased around 9.66% in last one month.Meanwhile, Nifty Financial Services index of which Bajaj Finance Ltd is a constituent, has eased around 3.19% in last one month and is currently quoting at 23882.35, down 1.39% on the day. The volume in the stock stood at 4.09 lakh shares today, compared to the daily average of 11.77 lakh shares in last one month.

The benchmark October futures contract for the stock is quoting at Rs 6906.3, down 1.18% on the day. Bajaj Finance Ltd tumbled 12.36% in last one year as compared to a 25.93% rally in NIFTY and a 19.62% spurt in the Nifty Financial Services index.

The PE of the stock is 32.91 based on TTM earnings ending June 24.

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