In this edition of Traders' Diary, the Zee Business research team provides exclusive research and investment ideas on 20 stocks to track for January 3, 2025. Analysts Pooja Tripathi and Kushal Gupta share their top stock picks, including Avati Feeds, PB Fintech, Bajaj Finance, Lupin, Bank of Baroda, JK Cement, Amber Enterprises, and V2 Retail. With targets and stop losses for each stock, this diary is a must-read for investors and traders.
Bajaj Finance and RBL Bank have ended their 8-year partnership for co-branded credit cards, causing a dip in shares for both entities. The apex lender, Reserve Bank of India, has raised concerns over co-branded cards, leading to mandatory approval for NBFCs every 2 years. The affected entities are now focusing on new partnerships and strategies for their credit card businesses, causing a bearish outlook for RBL Bank and a positive outlook for Bajaj Finance according to analysts. Stay updated with the latest business news and stock market updates on Zee Business, and utilize resources like the Income Tax Calculator to save money through our personal finance coverage.
Several major Indian banks, including Axis Bank, RBL Bank, HDFC Bank, Bandhan Bank, ICICI Bank, UCO Bank, Bajaj Housing Finance, and IndusInd Bank, have reported their Q2 earnings, with varying levels of success. While Axis Bank and Bajaj Housing Finance saw profits surge, RBL Bank and IndusInd Bank shares plunged due to disappointing earnings. HDFC Bank and ICICI Bank also reported positive but more modest profit increases, while UCO Bank saw an improvement in bad loan recovery through the NCLT process. The mixed results, combined with global market trends, are driving the overall market sentiment.
Bajaj Housing Finance's share price saw a 4.2% increase after the company reported a 26% rise in its consolidated net profit for the quarter ended September 2024. The company's net interest income also grew 13%, while its revenue from operations jumped by 26%. However, the company's asset quality deteriorated, with an increase in gross non-performing assets and net non-performing assets. Analysts expect the company's earnings-per-share growth to slow down in the future due to various factors.
Recent quarter earnings reports are causing major fluctuations in the stock market, with some companies experiencing sharp increases and others facing significant drops. TCS, the IT giant, saw its shares plummet by 2% after a disappointing Q2 earnings announcement, while Bajaj Auto announced a hike in deferred tax provision leading to their stock taking a hit. In contrast, HCL Tech and Infosys, leading IT companies, saw their stocks soar after strong earnings. Other companies, such as Bajaj Finserv, Asian Paints, and Bajaj Housing Finance, also experienced dips after reporting their earnings. Even the auto sector was not immune, with Maruti and Bandhan Bank experiencing both surges and drops respectively in their stock prices following their earnings announcements.
Bajaj Housing Finance, a non-banking financial company (NBFC), is set to launch its initial public offering (IPO) next week. The IPO is expected to raise Rs 6,560 crore and is being closely watched by investors. With the RBI requiring NBFCs to list, at least three more 'upper layer' NBFCs are expected to follow suit in the coming year, including Tata Capital Financial Services, HDB Financial Services, and Aditya Birla Finance. These listings not only fulfill regulatory requirements but also offer opportunities for growth and access to capital.
The Reserve Bank of India (RBI) has announced a lowered public float requirement for companies looking to list on the International Financial Services Centre (IFSC) in India. This move is aimed at promoting and encouraging more listings on the IFSC. Additionally, the RBI has also allowed NBFC depositors to withdraw their entire amount prematurely and has cancelled the registration for several NBFCs due to irregular lending. Bajaj Finance, a leading NBFC, has also forged partnerships with several companies in the commercial vehicle and housing finance sectors, further strengthening their presence in the market.
The long-awaited initial public offering of Bajaj Housing Finance has been announced, with a price band of Rs 66-70 per share and a total size of Rs 6,560 crore. The IPO will open on September 9 and conclude on September 11, with share allotment and listing dates set for September 12 and 16 respectively. Parent company Bajaj Finance will be selling equity shares worth Rs 3,000 crore as part of the offering.
Bajaj Housing Finance has officially announced the price band for its upcoming IPO, launching on September 9th, 2024. The public listing includes a fresh issue of equity shares and an offer-for-sale by parent company Bajaj Finance. The company aims to comply with RBI norms by listing its shares and the proceeds raised will be used to enhance its capital base and meet its financial needs. Don't miss the chance to bid for the issue this week, with the final allotment and debut in the stock market happening in mid-September.
The renowned brokerage firm Bernstein has initiated coverage on three stocks in the Indian banking sector - Bajaj Finance Ltd, IndusInd Bank Ltd, and Muthoot Finance Ltd. It has recommended a 'Market-Perform' rating for Bajaj Finance and 'Outperform' ratings for IndusInd Bank and Muthoot Finance. Bernstein has identified the Indian banking sector as a "land of compounders" and highlights the strong credit growth, favorable asset quality, and healthy margins. While the large private sector banks continue to be top compounding stories, niche lenders such as non-bank financial companies (NBFCs) and housing finance companies (HFCs) also offer promising growth opportunities. Bernstein values each stock based on their earnings potential and target prices for investors.