Bajaj Housing Finance Q2 Results: Net Profit Expected to Rise by 9% – AUM Growth at 25% YoY
Bajaj Housing Finance Ltd. is set to announce its second-quarter results for the fiscal year 2024-25 on Monday, October 21, 2024. This announcement marks the company’s first quarterly results since its stock market debut on September 16, 2024. Analysts are keenly anticipating a net profit rise of approximately 9% year-on-year, driven by significant growth in Assets Under Management (AUM), which is expected to increase by 25% YoY.
Main Points
Key Financial Highlights
Bajaj Housing Finance has been making waves in the financial sector since its recent IPO. The company reported that its AUM surged to ₹1.02 lakh crore, reflecting a 26% increase from ₹81,215 crore in the same quarter last year. This growth is attributed to a robust demand for housing loans and other financial products offered by the company.
AUM Growth
- Current AUM: ₹1,02,550 crore
- YoY Growth: 26%
- Increase from Last Quarter: ₹5,480 crore
The company’s loan assets also saw a substantial rise, reaching nearly ₹89,860 crore compared to ₹70,954 crore in the previous year. The total number of new loans booked during this quarter was 9.69 million, up from 8.53 million in Q2FY24.
Revenue Expectations
Analysts predict that Bajaj Housing Finance will report revenues around ₹7,617 crore, marking a significant increase from previous quarters. The anticipated net profit for this quarter is projected to be around ₹1,731 crore, up from ₹1,257 crore in the same period last year.
Market Performance
On its listing day, Bajaj Housing Finance’s shares soared over 135%, reaching a high of ₹188.5. However, recent trading has seen some fluctuations, with shares currently priced at approximately ₹138.77, down about 7.4% from their initial listing price.
Stock Performance Overview
| Date | Share Price (₹) | Change (%) |
|---|---|---|
| Listing Day | 188.5 | +135 |
| Current | 138.77 | -7.4 |
Despite the recent dip in share price, analysts remain optimistic about the company’s long-term growth potential due to its strong fundamentals and market position.
Competitive Landscape
Bajaj Housing Finance operates in a competitive environment dominated by established banks and financial institutions. Analysts have raised concerns regarding the company’s valuation and market dynamics, especially as it attempts to replicate the success of its parent company, Bajaj Finance.
Brokerage firm Ambit has initiated a “Sell” rating on Bajaj Housing Finance, setting a target price of ₹85, indicating potential downside risks based on current valuations that are perceived as high compared to industry averages.
Analyst Insights
- Ambit Target Price: ₹85
- Current Valuation Premium: 104% over peers
- Projected CAGR for AUM: 24%
Future Outlook
Looking ahead, Bajaj Housing Finance aims to maintain its growth trajectory by expanding its product offerings and enhancing customer service. The company is focusing on diversifying its loan portfolio beyond housing finance to include personal loans and loans against property.
The upcoming results announcement is expected to provide further insights into the company’s operational performance and strategic direction for the future.
