Bajaj Finance’s stock price experienced a decline of over 2 percent during early trading on BSE on October 18, following the release of the company’s quarterly results for the current fiscal year (Q2FY24). Bajaj Finance’s stock price opened at ₹8,080.95, a decrease from the previous closing figure of ₹8,091.35, swiftly falling by 2.05 percent to reach ₹7,925. As of 9:25 am, the stock was down by 1.36 percent at ₹7,981.35 on BSE.
Over the past year, Bajaj Finance’s stock price has demonstrated weaker performance compared to the equity benchmark Sensex. While the stock has recorded only around a 10 percent gain, the Sensex has seen an approximate 14 percent increase in the last year.
In terms of its 52-week performance, Bajaj Finance’s stock price reached its highest point at ₹8,190 on October 6 this year, and its lowest point at ₹5,487.25 on March 20 this year, both on the BSE.
Bajaj Finance Q2 Results After the market closed on October 17, Bajaj Finance reported a 27.7 percent year-on-year (YoY) growth in its consolidated net profit for Q2FY24, amounting to ₹3,550.80 crore as opposed to ₹2,780.65 crore in the corresponding quarter of the previous year. On a consolidated basis, the non-banking finance company (NBFC) achieved a 26 percent YoY growth in net interest income (NII) during Q2FY24, amounting to ₹8,845 crore, up from ₹7,002 crore. The company’s assets under management (AUM) also experienced a 33 percent YoY growth, reaching ₹2.9 lakh crore, with interest income displaying a growth of 38 percent, totaling ₹11,734 crore. During Q2FY24, the company welcomed 35.8 lakh new customers, expanding the total customer base to 7.7 crore as of September 30.
In addition, Bajaj Finance announced its preemptive reduction in business by 8-14 percent in urban and rural areas for customers who already have multiple small-ticket loans, according to Managing Director Rajeev Jain’s statement to analysts.
Furthermore, Bajaj Finance disclosed its acquisition of up to 26 percent equity stake in Pennant Technologies Private Limited for approximately ₹267.50 crore.
Post-Q2 Views from Brokerages Several brokerage firms have maintained their earlier views on Bajaj Finance’s stock following the NBFC’s September quarter earnings. Although some have revised their estimates for the company.
Motilal Oswal Financial Services has reaffirmed its buy rating on the stock with a target price of ₹9,600, representing a potential 19 percent upside. The firm emphasized Bajaj Finance’s robust customer acquisitions and the new loan trajectory, stating that the digital ecosystem’s integration, including apps, web platforms, and full-stack payment offerings, will only strengthen the momentum. Motilal Oswal has incorporated the announced equity capital raise of around ₹10,000 crore into its estimates, projecting an AUM and PAT CAGR of approximately 29 percent and 28 percent, respectively, over FY23-FY26.
Nirmal Bang has upgraded the stock to a ‘buy’ and raised the target price to ₹9,520, indicating an 18 percent potential upside. The brokerage expects substantial AUM growth of 31 percent in FY24 and 29 percent in FY25, driven by equal growth across segments. It anticipates Bajaj Finance’s NIM to moderate in FY24 to 10.2 percent due to peaking cost of funds (CoF), yet believes this will be offset by scale benefits as operating leverage takes effect, maintaining RoA at nearly 5 percent.
Global brokerage firms have also retained their views on Bajaj Finance stocks. Among them, CLSA maintained a buy rating on Bajaj Finance with a target price of ₹9,500, and Jefferies upheld a buy rating while increasing the target price to ₹9,470 from the previous ₹8,830. Meanwhile, Macquarie sustained an underperform rating on Bajaj Finance with a target price of ₹8,033 due to pricey valuations. Goldman Sachs continued to hold a ‘sell’ rating on Bajaj Finance, with a target price of ₹7,205.
