Bajaj Housing Finance saw a notable rise in its stock price, gaining as much as 4% during early trading on October 22, following a strong earnings report for the July-September quarter. This marks the company's first earnings announcement since its initial public offering (IPO) in September. The positive quarterly performance has drawn the attention of investors involved in share market investment.
For the second quarter, Bajaj Housing Finance reported a 21% year-on-year increase in net profit, reaching ₹545.6 crore, up from ₹451 crore in the same period last year. Revenue also witnessed a strong 26% growth, climbing to ₹2,410 crore compared to ₹1,911 crore a year ago. The steady financial performance has further cemented the company's standing in the share market investment space.
The company also recorded robust growth in its assets under management (AUM), which rose 26% year-on-year. This AUM growth has remained steady over the past two quarters, offering reassurance to those looking at share market investment opportunities in the housing finance sector.
Bajaj Housing Finance saw its gross non-performing assets (NPA) increase to 0.29% from 0.24% in the previous year, while net NPAs rose to 0.12% from 0.09%. The provision coverage ratio (PCR) stood at 57.87%, down from 60.79% a year ago. Despite the slight rise in NPAs, the company's strong earnings have managed to keep investor confidence high in terms of share market investment.
Bajaj Housing Finance has been a prominent player in the market since its IPO in September 2024, where the company was listed at a 136% premium on its debut. This impressive start saw the company's market capitalisation soar to ₹1.4 lakh crore, making it the most valuable housing finance firm in India. The stock's post-IPO performance has made it a key focus for share market investment, particularly given the significant returns for early investors.
Following its initial surge, the stock experienced some profit booking, which led to a 15% decline from its record high of ₹188.50 after the market debut. At 09.48 am on October 22, shares were trading at ₹139.20 on the National Stock Exchange (NSE), though still in the green and up 4%, compared to the day's high of ₹142.33. The volatility in the stock has been closely watched by those with a stake in share market investment.
Bajaj Housing Finance's healthy Q2 earnings performance, along with consistent asset growth, have contributed to a 4% rise in the stock price, reinforcing its appeal to share market investment enthusiasts. While the stock has faced some profit booking and market fluctuations post-IPO, the company's robust financials and leading position in the housing finance sector continue to offer promising prospects for long-term investors.
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