Bajaj Finance announced their Q2 business update post market hours on October 3.

What Happened: Bajaj Finance's assets under management (AUM) grew by 29% to ₹3.73 lakh crore in Q2FY25 compared with ₹2.90 lakh crore in the previous year. The AUM in the September quarter grew by ₹19,700 crore.

The new loans booked by the company grew 14% to 96.9 lakh in Q2FY25 compared to 85.3 lakh in the previous year. Customer franchise increased to 9.20 crore compared to 7.65 crore in the corresponding quarter of the previous year.

The company's deposit book grew by 21% to ₹66,100 crore. 

See Also: DMart Shares Plummet Over 4% As Lacklustre Q2 Topline Growth Divides Brokerages

Brokerage Views: Noumra maintained a "neutral" call on Bajaj Finance with a target price of ₹7,500. The brokerage said the Q2 business update was broadly in line. Credit costs would be key monitorable going into Q2FY25, the research firm said. Nomura added that any increase in FY25 credit cost would be taken negatively by the street and vice versa. 

Morgan Stanley maintained an "overweight" call with a target price of ₹9,000. AUM growth was above estimates said the brokerage. According to the research firm, the customer acquisition annualising at 1.7 crore is above the guidance of 1.3 crore to 1.4 crore for FY25.

However, the brokerage expects the Q2 to be weak due to higher credit costs and low net interest margins. The research firm added that the company's valuation is attractive and FY26 profit is expected to grow at 25%.

Price Action: Shares of Bajaj Finance were trading down 1.94% to ₹7,290. 

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