Bajaj Finance surges over 2%, top Nifty gainer on strong Q3 update; Bajaj Finserv follows suit

Over the past one month, shares of Bajaj Finance and Bajaj Finserv have surged up to 10 percent

Shares of Bajaj Finance and Bajaj Finserv surged up to 2.5 percent on January 6, reaching Rs 7,599 and Rs 1,732 per share, respectively, following a strong business update for the October-December quarter (Q3FY25) from the parent company.

Bajaj Finance reported 28 percent year-on-year (YoY) growth in assets under management (AUM), reaching Rs 3.98 lakh crore in Q3FY25, up from Rs 3.10 lakh crore a year ago. The NBFC also saw a 19 percent YoY increase in its deposit book, rising to Rs 68,800 crore from Rs 58,008 crore last year.

In addition, Bajaj Finance achieved its highest-ever quarterly new loan bookings, with 12.06 million loans in Q3FY25, 22 percent increase from 9.86 million loans in the same quarter of the previous year. The customer base grew significantly, reaching 97.12 million by December 2024, up from 80.41 million a year earlier, marking the largest-ever quarterly increase of 5.03 million new customers.

Catch all the market action on our LIVE blog

Following these results, BofA reiterated its "buy" rating on Bajaj Finance, setting a target price of Rs 8,800 per share, citing strong growth in new loans and customer acquisition.

JPMorgan also maintained an "overweight" rating, with a target price of Rs 7,300 per share, forecasting 29 percent CAGR growth in AUM over the next three years. The brokerage firm also noted the company's continued strong performance among large financials, though it cautioned about the broader industry cycle.

Earlier, Citi placed Bajaj Finance on a 90-day positive catalyst watch, maintaining a 'Buy' rating with a target price of Rs 8,150 per share. Citi noted the company's revised credit cost guidance of 2.05 percent for FY25, with a slight increase expected for the December quarter, and highlighted proactive risk management measures, including reducing exposures in certain segments.

Over the past one month, shares of Bajaj Finance and Bajaj Finserv have surged 10 percent and 4 percent, respectively. In comparison, Nifty 50 index declined over 2 percent during the same period.