Bajaj Housing Finance Eyes Q2 Results, AUM Up 25%

Bajaj Housing Finance shares traded near Rs 83.58 on Friday, little changed, ahead of its September quarter results, which are listed for this week’s reporting calendar after a business update showed disbursements and assets under management growing about 25%. In its provisional update for the quarter ended September 30, the housing lender reported gross disbursements of about Rs 19,930 crore, up from Rs 15,914 crore a year ago. AUM stood at about Rs 1,58,190 crore, up 25% year on year and higher by roughly Rs 8,566 crore during the quarter, while loan assets rose to about Rs 1,39,850 crore from Rs 1,13,059 crore. The update sets the baseline for the results after a June quarter in which net profit rose 22.6% to Rs 715.28 crore. For a housing finance company, AUM growth shows how fast the loan book is expanding, but profit depends on spreads, funding costs and credit quality. Growth of around 25% is strong for a lender of this size, so investors will look for whether net interest margins held and whether profit growth kept pace with the book. Any slippage in asset quality or margin pressure could weigh on a stock that remains well below its yearly high. The stock has ranged between Rs 72.65 and Rs 112.40 over the past 52 weeks, with a market cap of around Rs 69,808 crore. Trading closer to its low than its high, the stock now awaits profit and margin data to show whether earnings are keeping up with the growth already reported. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in Bajaj Housing Finance. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.