The Bajaj Finance stock closed 10.97% higher in trade today after the firm reported a 54% rise in net profit in the second quarter of the current fiscal. The stock closed at 2,312 or 228 points higher on the BSE. In early trade too, the stock was trading 6.45% or 134 points higher at 2,218.50 on the BSE. The stock has risen after four days of consecutive fall and opened with a gain of 3.75% at 2,162.05 level.
The large cap stock touched an intra day high of Rs 2,350 or 12.81% higher from its previous close of 2,083 on the BSE. Its market capitalisation rose to Rs 1.33 lakh crore. It was the top gainer on Nifty today.
The stock has gained 21.33% during the last one year and 26.13% since the beginning of this year. 14 of 24 brokerages rate the stock "buy" or 'outperform', seven "hold" and three "underperform" or "sell", according to analysts' recommendations tracked by Reuters.
The non-banking financial company (NBFC) on Tuesday reported a 54 per cent rise in its consolidated net profit at Rs 923 crore in the quarter ended September, helped by higher growth in assets under management.
The company had reported a net profit of Rs 598 crore in the year-ago period.
It's consolidated Assets under management (AUM) stood at Rs 1,00,217 crore in the reporting quarter, compared with Rs 72,669 crore in the same period last year.
The consolidated results of the company include the results of its wholly owned subsidiaries Bajaj Housing Finance and the newly acquired Bajaj Financial Securities (BFinsec).
Total income on a consolidated basis grew by 40 per cent to Rs 4,296 crore, against Rs 3,066 crore last year. Loan losses and provisions increased to Rs 315 crore, from Rs 221 crore in the year-ago quarter.
Gross non-performing asset (NPA) stood at 1.49 per cent, while net NPA was at 0.53 per cent. The company saw its cost of borrowing flat at 8.21 per cent during the quarter, on a sequential basis.
On a standalone basis, the company posted a 55 per cent increase in net profit at Rs 920 crore, compared with Rs 594 crore in the year-ago quarter.
The company is engaged in lending and allied activities.
It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services. Its consumer lending products include two-wheelers and three-wheelers finance, consumer durables finance, digital products finance, retailer finance, salaried personal loans, e-commerce consumer finance, e-commerce seller finance and home loans.
Its SME lending products include loan against property and business loans. Its commercial lending products include loan against securities and financial institutions group lending business. It is engaged in life insurance distribution, general insurance distribution and mutual fund distribution.