Bajaj Finance share trading higher ahead of Q3 earnings, here's what to expect

Bajaj Finance share was trading marginally higher in afternoon trade today ahead of the firm's Q3 earnings set to be announced today. The large cap stock has risen 5.52% in the last 2 days. Bajaj Finance share trades higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages.

The stock has gained 20% in one year but fallen 6% since the beginning of this year.

The share was trading 1.09% or Rs 54.15 higher at Rs 5,015 against previous close of Rs 4,959.15 on BSE.

Market cap of the firm rose to Rs 3.02 lakh crore.

The non-banking finance firm is expected to report a double digit fall in Q3 net profit on the back of elevated provisions.

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"We expect Bajaj Finance to deliver flat YoY NII growth on the back of 6 bps YoY NIM compression to 10.25 percent. 35 bps QoQ NIM expansion reflects falling funding cost, marginally higher yield in consumer business and partial run-down of excess liquidity," said Kotak Institutional Equities which expects 19.3 percent YoY fall in profit and 58 percent increase in provisions.

In Q2 of the current fiscal, Bajaj Finance posted a 35.94 per cent year-on-year (YoY) drop in net profit at Rs 964.88 crore against profit of Rs 1,506.29 crore in the corresponding quarter last year. Net interest income of the NBFC increased 4 per cent YoY to Rs 4,165 crore.