Bajaj Finance Share Price Rise on 31% AUM Surge and 10% YoY Loan Growth in Q1

Bajaj Finance share price surged over 4% to ₹7,325 per share on July 4, following the company's report of a 31% year-on-year (YoY) increase in assets under management (AUM) for the quarter ending in June (Q1FY25). The NBFC’s AUM rose to ₹3.54 trillion as of June 30, up from ₹2.70 trillion in the same period last year.

Bajaj Finance’s share price at 11:10 am IST was going at ₹7,188.80 a piece.

Over the past month, the stock of this NBFC giant surged more than 16%, outperforming the 11% rise in the benchmark Nifty 50 index. Previously, Bajaj Finance had reached a fresh 52-week high of ₹8,190 per share on October 6, 2023.

Bajaj Finance's assets under management (AUM) increased to ₹3.5 lakh crore in Q1FY25, up from ₹2.7 lakh crore in the same period last year. Additionally, the number of new loans booked during the quarter grew by 10% year-on-year, reaching 10.9 million compared to 9.9 million in the corresponding quarter of FY24. 

“AUM in Q1 FY25 grew by approximately ₹23,500 crore,” Bajaj Finance said in an exchange filing. New loans booked during Q1 FY25 increased by 10% to 10.97 million, compared to 9.94 million in the corresponding quarter of FY24. Additionally, the deposit book grew by 26% year-on-year to ₹62,750 crore in Q1FY25. The management reported that the non-bank lender's consolidated net liquidity surplus was approximately ₹16,200 crore.

The firm reported a consolidated net liquidity surplus of nearly ₹16,200 crore during the period under consideration, highlighting that the company’s liquidity position remains robust. Additionally, the company's customer base expanded to 88.11 million from 72.98 million as of June 30, 2023. This represents an increase of 4.47 million customers in Q4 FY24.

Bajaj Finance resumed the sanctioning and disbursement of loans under its 'eCOM' and 'Insta EMI Card' programs, as well as the issuance of EMI cards, after the RBI lifted restrictions on these businesses on May 2, 2024. Additionally, the company raised around ₹10,000 crore through qualified institutional placement (QIP) and preferential allotment, which analysts at InCred Equities believe will support growth until FY26.

"The aggressive customer acquisition and flawless diversity into new business segments are the unique features of the company. The reshuffle in managerial roles provides comfort over management stability and ability of the company to maintain diversified growth momentum," they added, retaining an 'add' rating on Bajaj Finance, with ₹9,000 target price.