Bajaj Finance Stock Price: Non -banking financial company Bajaj Finance has a major brokerage bullish over its stock after the December quarter results. The third quarterly results of the company have been better than the estimate. Brokerages have expected the stock ahead up to 15 percent. Morgan Stanley has retained the ‘overweight’ call on Bajaj Finance’s stock and has increased the target price to Rs 9,300 per shares. This is about 15 percent more than the closing price of the stock on 29 January on BSE.
Morgan Stanley’s note states that the management has given guidance of low credit cost in the fourth quarter of FY 2025 i.e. January-March 2025. Employed visibility of +25% EPS growth in FY 2026 is expected, but it will depend on macroeconomic conditions.
Bajaj Finance’s profit in Q3 increased by 18 percent
The consolidated net profit of Bajaj Finance increased by 18 percent to Rs 4,308 crore in the October-December 2024 quarter. A year ago, the company made a net profit of Rs 3,639 crore in the same quarter a year ago. The total income of the company increased to Rs 18,058 crore in the December 2024 quarter, which was Rs 14,166 crore a year ago. Pure interest income increased to Rs 9,382 crore, which was Rs 7,655 crore in the December 2023 quarter. However, the gross NPA rose to 1.12 percent, which was 0.95 percent in the same quarter of the previous financial year. The net NPA rose to 0.48 percent, which was 0.37 percent in the December 2024 quarter.
What is the approach of Jeffers, Nomura and HSBC
Jeffers has given a target of Rs 9,270 per share and ‘by’ call for Bajaj Finance shares. Jefferies has said that the trends of asset quality are getting stable, and the management hopes that the credit cost will be reduced from the January-March 2025 quarter. Nomura has also given a ‘bye’ call for the stock and has increased the target price to Rs 9,000 per share. HSBC has increased the target price with ‘bye’ call to Rs 8,900 per share. HSBC has made slight changes to its Arnings Estimates for Bajaj Finance. He believes that Bajaj Finance shares are entitled to premium compared to its competitions.
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Share boom
On January 30, Bajaj Finance shares showed up to 6 percent. Shares on BSE opened at Rs 7850 with an increase in the morning. After this, he went up to Rs 8249.95. The company’s market cap has been about Rs 5 lakh crore. So far, the share price has risen 15 percent in January.
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