Bajaj Finance share rose over 2% in early trade today despite fall in Q2 profit. The firm reported a 18% decline in net profit for the quarter ended September 2020. Sentiments around the stock were upbeat as NPAs fell in Q2 and management delivered a positive commentary expecting rebound in growth.
Bajaj Finance stock touched an intraday high of Rs 3,305.95, rising 2.25% on BSE. Market cap of the NBFC rose to Rs 1.97 lakh crore. Total 1.03 lakh shares changed hands amounting to turnover of Rs 33.74 crore on BSE.
The large cap stock has gained after two days of consecutive fall.
The share trades higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages. The share has fallen 18.9% in one year and lost 22.79% since the beginning of this year.
Net profit fell to Rs 965 crore in Q2 against Rs 1,506 crore in the year-ago period. Loan losses and provisions for second quarter ended September 30, 2020, were Rs 1,700 crore against Rs 594 crore in Q2 FY20.
The lender nearly tripled provisions for bad loans as the coronavirus pandemic affected demand for credit and borrowers' ability to repay.
Gross NPAs and Net NPAs in the end of Q2 stood at 1.03% and 0.37% respectively against 1.61% and 0.65% as of 30 September 2019.
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