Bajaj Finances gains nearly 3% after Q3 business update; brokerages divided

Bajaj Finance shares in Monday's trade (January 6) zoomed up to 2.5 per cent at the day's high to Rs 7,599 per share on the BSE. The spurt in the stock came after the company release its quarterly business update.

At around 11:02 am, shares of the NBFC traded with gains over 1 per cent or Rs 82.2 at Rs 7,493.70 apiece.

For the quarter ended December 31, 2024, the company's assets under management (AUM) grew by 28 per cent to approximately Rs 3,98,000 crore as compared to Rs 3,10,968 crore as of December 31, 2023. 

New loans booked were highest ever at 12.06 MM in Q3FY25 as compared to 9.86 MM in Q3FY24, recording a remarkable growth of 22 per cent.

Furthemore, deposits book stood at approximately Rs 68,800 crore as of 31 December 2024 in comparison to Rs 58,008 crore recorded during the same quarter last year, a growth of 19 per cent.

Moreover, the company during the review quarter posted the highest-ever quarterly increase in its customer franchise of 5.03 MM taking the total count to 97.12 MM as of the quarter ended December 2024 as against 80.41 MM as of 31 December 2023.

Brokerages and analysts view on Bajaj Finance post Q3 business update

JP Morgan continues with its 'overweight' call on the counter and a target of Rs 7,300, implying a potential downside of 1.5 per cent from the previous close of Rs 7,411.5 per share. The global brokerage believes that the NBFC's growth momentum remains undeterred. The brokerage forecast 3-year AUM growth at 29 per cent. Further it added that the company's growth continues to be the best amongest leading financials.

Also, it finds standalone valuations for Bajaj Finance as reasonable.

On the optimistic side though, BofA has continued with its previous 'buy' rating and a target of Rs 8,800, implying potential gains of nearly 19 per cent. The brokerage highlighted that the company's core AUM growth stood strong at 6.4 per cent sequentially. Also, the NBFC's performance had been robust on both the new loans booked and customer acquistion metrics.

Also, it pointed out at risk pruning and tighter underwriting in select segments at the leading financial company.

Meanwhile, another brokerage Nomura has upgraded the stock to 'buy' from the earlier 'neutral' stance and pegged the target at Rs 8,560- implying potential gains of nearly 16 per cent. Earlier, the target for the stock was Rs 7,250 per share.

The brokerage is bullish on the counter as it believes that the company's Q3 performance has been robust across parameters. Also, it cites a better FY26 outlook in contrast to the current fiscal year.