Bajaj Finance shares gain ahead of Q2 results. Profit may jump 30%, say analysts

Bajaj Finance Ltd is seen reporting a 30 per cent year-on-year (YoY) rise in net profit on a similar growth in sales. Analysts expects net interest margin (NIM) may see some 20-40 basis points sequential fall due to an increase in cost of borrowings, analysts said adding an improvement in asset quality is likely.

Bajaj Finance had earlier reported 7.4 per cent sequential loan growth in the September quarter against 6-9 per cent QoQ in the last four quarters. It reported a 33 per cent YoY growth in asset under management. Growth in customer base was strong at 22 per cent YoY with higher growth in new loans booked of 26 per cent YoY. Deposits for the quarter grew 40 per cent YoY and liquidity remains adequate, Jefferies said.

IIFL Securities expects Bajaj Finance to report 28 per cent YoY rise in profit at Rs 3,550 crore on 30 per cent YoY rise in NII at Rs 7,200 crore. Bajaj Finance, the brokerage said, reported strong AUM growth of 32.9 per cent YoY in its pre-quarterly release. Its omni-presence strategy seems to have started bearing fruits as it maintained pace of high new customer acquisitions, the domestic brokerage said.

Ahead of its earnings, the stock was trading at Rs 8,100, up 0.84 per cent.

Kotak Institutional Equities sees Bajaj Finance to report 29 per cent YoY rise in profit at Rs 3,588.30 crore on 28.9 per cent YoY rise in NII at Rs 7,136.50 crore. Provisions for the quarter is seen rising 33.5 per cent YoY to Rs 980.50 crore. Pre-provsion profit is seen rising 29.9 per cent YoY to Rs 5,829.50 crore. NIM is seen at 10.2 per cent, down from 10.4 per cent in June and 10.5 per cent in the year-ago quarter.

InCred Equities expects Bajaj Finance to report 31.1 per cent oY rise in net profit at Rs 3,644.30 crore from Rs 2,780.70 crore in the corresponding quarter last year

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