Bajaj Housing Finance share price

Bajaj Housing Finance’s 21% Profit Surge Post Blockbuster IPO: The Hottest Q2 FY25 Reveal

Bajaj Housing Finance continues its impressive run in FY25, reporting a notable 21% jump in net profit for the quarter ending September 2024. The company’s profit after tax (PAT) soared to ₹546 crore, compared to ₹451 crore in the same quarter last year, marking a strong start following its recent blockbuster IPO. Investors have kept a keen eye on this NBFC, and its stellar results have only added fuel to its growth narrative.

Post-IPO Success Fuels Market Excitement

Bajaj Housing Finance made a splash with its initial public offering (IPO) in September 2024, boosting its market capitalization to a staggering ₹1.4 lakh crore. The stock’s debut performance was nothing short of spectacular, surging 136%, effectively doubling the capital of its early investors. Despite a slight pullback, the company remains a major force, with its current market cap standing at ₹1.14 lakh crore.

However, as with any volatile stock, the company’s share price saw a brief decline of 2% on October 21, closing at ₹136.8 on the NSE, just before announcing its financial results. This drop brought the stock down from its peak of ₹188.5, but analysts believe this retracement offers long-term investors a strong buying opportunity.

Q2 Profit Growth Impresses Investors

Bajaj Housing Finance’s net profit for Q2 FY25 jumped by 21%, reaching ₹546 crore, up from ₹451 crore in the same period last year. Profit before tax (PBT) also surged by 23%, rising to ₹708 crore from ₹575 crore in Q2 FY24, showcasing the company’s resilience and growth potential.

Such results have solidified Bajaj Housing Finance’s position as a leading player in the NBFC sector, especially after its IPO buzz. Investors are now keenly watching how the company navigates the competitive housing finance market moving forward.

Robust Revenue and NII Growth

The company’s revenue from operations reached ₹2,410 crore for the quarter, reflecting a 26% increase compared to ₹1,911 crore in the same quarter last year. Bajaj Housing Finance’s ability to grow its top line consistently shows the strength of its business model and the growing demand for housing finance in India.

Additionally, net interest income (NII) for Q2 FY25 increased by 13%, reaching ₹713 crore compared to ₹632 crore in Q2 FY24. Net total income for the quarter rose by 18%, clocking in at ₹897 crore, up from ₹761 crore in the corresponding period last year. These figures demonstrate the company’s ability to manage its interest spread effectively while growing its asset base.

AUM Growth and Low NPAs Signal Financial Strength

Bajaj Housing Finance also reported significant growth in its assets under management (AUM), which surged by 26% to ₹1,02,569 crore as of September 30, 2024, compared to ₹81,215 crore on September 30, 2023. The increase in AUM highlights the company’s growing market share in the housing finance sector.

Despite this growth, the company has kept its asset quality strong, maintaining Gross NPA and Net NPA at low levels. As of September 30, 2024, Gross NPA stood at 0.29%, while Net NPA was at 0.12%, a slight increase from 0.24% and 0.09%, respectively, in the same period last year. These figures reflect prudent risk management amid rapid business expansion.

Conclusion

Bajaj Housing Finance has delivered exceptional financial results in Q2 FY25, further solidifying its place in the competitive NBFC space. With a 21% rise in net profit, strong revenue growth, and increasing assets under management, the company is well-positioned for sustained growth in the coming quarters. Bajaj Housing Finance share price, Its recent IPO success has propelled it into the limelight, and investors are optimistic about the future. As long as Bajaj Housing Finance maintains its low NPAs and continues expanding its AUM, it’s a stock to watch closely.