Bajaj Finance gains up to 1% after quarterly business update; brokerages divided

Bajaj Finance share price today NSE, Bajaj Finance Q1FY25 business update: Shares of the leading NBFC Bajaj Finance will be in focus in Thursday’s session (July 4) after the company released its quarterly business update after market hours on the previous day.

In the previous day’s trade, shares of the company ended higher by over 1 per cent at Rs 7,251.8. 

On a consolidated basis,new loans booked during the first quarter of FY25 grew by 10 per cent to 10.97 MM as compared to 9.94 MM in Q1 FY24. AUM at the company also registered growth of 31 per cent to approximately Rs 354,100 crore during the review period as against Rs 270,097 crore.

Net liquidity surplus stood at approximately Rs 16,200 crore as of 30 June 2024, indicating strong liquidity position. Deposit book also logged a healthy growth of 26 per cent on-year to Rs 62,750 crore as against Rs 49,944 crore in the same quarter last year.

What brokerages suggest for Bajaj Finance after Q1FY25 update?

Global brokerage Morgan Stanley has given an overweight call on the stock for a target of Rs 9,000, suggesting a potential upside of over 24 per cent. As per the brokerage, the company has logged decent AUM growth and customer acquisition during the June quarter after the RBI lifted restrictions in respect of sanction as well as disbursal of loans under two products namely- ‘eCOM’ and ‘Insta EMI Card’.

The brokerage sees the stock to perform well going ahead in the second half of the current fiscal year as growth picks up above 20 per cent verus. low double digits in H1FY25.

Citi on the other hand is bullish on the counter and has suggested a ‘buy’ call with a  target price of Rs 8675.

Meanwhile, UBS is bearish on Bajaj Finance and has recommended a ‘sell’ with a target of Rs 6,800, suggesting a possible downside of over 6 per cent. The brokerage maintains that AUM growth of 31 per cent on-year at the company is ahead of its estimates at 28 per cent. It anticipates weak EPS growth of 11 per cent YoY in 1Q (slowest in 12 Qs) on higher credit cost and decline in NIMs.