 "Bajaj Finance extends rally on strong Q3 results")
Bajaj Finance has rallied 6% to Rs 6,744, its fresh record high on the BSE. In past three trading sessions the stock surged 16% from Rs 5,830 on February 2, after the company reported a stellar set of numbers for the third quarter ended December 31, 2015 (Q3FY16). The S&P BSE Sensex was down 0.24% during the period.
Bajaj Finance posted a 58% year on year (YoY) growth in net profit at Rs 408 crore as against Rs 258 crore posted in same quarter last financial year.
Strong assets under management growth (41% YoY) on back of strong festive demand, improved asset quality and 87 basis points YoY improvement in calculated margins were the highlights of the quarter, according to analyst at Motilal Oswal Securities.
The broking firm maintains ‘buy’ rating on the stock with target price of Rs 7,194.
Bajaj Finance continues to reap the benefits of healthy consumer demand and is now a dominant player in consumer player financing segment. It continues to increase its market share in the consumer business – though a higher share of incremental growth could be driven by the low-yield mortgage business, which could pressurize margins, Motilal Oswal Securities said in a report dated February 3.
At 10:24 AM, the stock was up 5% at Rs 6,654 on the BSE with a combined 101,062 shares changing hands on the counter on the BSE and NSE.
Bajaj Finance posted a 58% year on year (YoY) growth in net profit at Rs 408 crore as against Rs 258 crore posted in same quarter last financial year.
Strong assets under management growth (41% YoY) on back of strong festive demand, improved asset quality and 87 basis points YoY improvement in calculated margins were the highlights of the quarter, according to analyst at Motilal Oswal Securities.
The broking firm maintains ‘buy’ rating on the stock with target price of Rs 7,194.
Bajaj Finance continues to reap the benefits of healthy consumer demand and is now a dominant player in consumer player financing segment. It continues to increase its market share in the consumer business – though a higher share of incremental growth could be driven by the low-yield mortgage business, which could pressurize margins, Motilal Oswal Securities said in a report dated February 3.
At 10:24 AM, the stock was up 5% at Rs 6,654 on the BSE with a combined 101,062 shares changing hands on the counter on the BSE and NSE.
