Bajaj Housing Finance Ltd shares surged by up to 4% in early trading on October 22, following the release of its strong financial results for the July-September quarter. The non-banking financial company (NBFC) posted a 21% year-on-year increase in net profit, rising to Rs 545.6 crore from Rs 451 crore in the same period last year. Revenue also saw significant growth, up 26% to Rs 2,410 crore compared to Rs 1,911 crore a year ago.
The company reported continued growth in its assets under management (AUM), which increased by 26% year-on-year, reflecting its consistent performance over the past two quarters. However, there was a slight rise in gross non-performing assets (NPA), which went up to 0.29% from 0.24%. Net NPAs also saw a modest increase, rising to 0.12% from 0.09%, signaling a minor rise in loan defaults. Additionally, the provision coverage ratio (PCR) dropped to 57.87% from 60.79%, indicating a reduced buffer for potential loan losses.
Since its impressive market debut last month, where the stock was listed at a 136% premium and doubled investors’ returns, Bajaj Housing Finance has attracted significant attention. By September 2024, its market capitalization had reached approximately Rs 1.4 lakh crore, making it India’s most valuable housing finance company. However, the stock has experienced some profit-taking in recent weeks, falling over 15% from its all-time high of Rs 188.50, which it hit shortly after its listing.
As of 11 am, the shares were trading with a 1% gain at Rs 137.85 per share on the NSE. Despite the recent correction, the company’s strong earnings and solid fundamentals have kept investor sentiment positive. With a competitive market and evolving economic conditions, Bajaj Housing Finance remains a stock to watch closely in the coming sessions. Investors will be monitoring its strategies to sustain growth while managing rising NPAs and maintaining resilience.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Stock market investments are subject to market risks, and past performance does not guarantee future results. Readers are advised to conduct their own research or consult with a certified financial advisor before making any investment decisions. The publisher is not responsible for any losses incurred as a result of following the information provided in this article.
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