Kotak Equities estimates profit growth to be as high as 61% to Rs 613 crore, while net interest income (NII) is seen at 34% to Rs 844 crore.
The pre-provision profit for the quarter is estimated at Rs 761 crore, which is a 45% increase from the previous year period.
“Bajaj Housing will likely report 5.6% QoQ AUM growth in 4QFY25 in line with 5.6-6.3% reported in the previous four quarters. NIM will likely remain stable QoQ to 3.4% as cost of borrowing peaks out,” the brokerage said.
Operating expense growth will likely remain moderate at 8% YoY, leading to 12 bps YoY decline in cost-to-AUM ratio to 0.75% in 4QFY25. “We pen down credit cost of 12 bps (13 bps in 3QFY25 and 16 bps in (4QFY24),” Kotak said.
In the preceding December quarter, the company reported 25% YoY growth in its profit after tax (PAT) at Rs 548 crore, while net interest income rose 25% YoY to Rs 806 crore.Shares of Bajaj Housing had a steep fall from Rs 188 in September last year and made a low of Rs 103 in Jan this year. However, the stock has later recover Rs 128 on continuous buying but faced profit booking and made a higher bottom formation at Rs 109 in AprilAnalysts say the stock recently crossed the intermediate high of 128 and reached a high of 131. It has given a Channel breakout post consolidation zone forming higher bottoms at 105 and 109 and is trading above all averages after a long time.
“Indicators like MACD & ADX suggest a firm Positive Uptrend. Target of 170 is expected & further addition is suggested at lower support levels at (124-120)-117-(113-111) in case of intermediate fall. Stop loss in the trade should be kept at 108,” recommended Ventura.
Bajaj Housing stock rose about 4% year-to-date.
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