logo
LIC-owned NBFC stock under  ₹50 jumps despite flat trends in Indian stock market

LIC-owned NBFC stock under ₹50 jumps despite flat trends in Indian stock market

Mint09-07-2025
LIC-owned NBFC stock under ₹ 50 Paisalo Digital rose as much as 10 per cent in Wednesday's trading session despite weak market sentiments. The NBFC stock rallied after the company announced the date for quarterly results for FY26.
Paisalo Digital share price opened at ₹ 30.61 apiece in early morning session on July 8, as compared to previous close of ₹ 30.46. The NBFC stock climbed over 10.49 per cent to ₹ 33.82 during the intraday session.
In an exchange filing, the company said that board will meet on July 21 to consider and approve financial results for the quarter ended June 30, 2025.
' This is to inform that a meeting of the Board of Directors of Paisalo Digital Limited ('Company') is scheduled to be held on Monday, July 21, 2025, inter alia, to consider and approve the standalone and consolidated Unaudited Financial Results of the Company for the quarter ended June 30, 2025,' it said in the filing.
The company further informed that the the trading window for dealing in the securities of the company is closed with effect from July 1, 2025 and shall remain closed till 48 hours after the financial results and outcome of the aforesaid Board meeting are made public.
Paisalo Digital reported a 25 per cent increase in standalone net profit for the fourth quarter of FY25, reaching ₹ 45 crore compared to ₹ 36 crore in the same quarter last year.
Net Interest Income (NII) for the quarter stood at ₹ 96 crore, marking a 41 per cent year-on-year rise. Total interest income during the March 2025 quarter rose to ₹ 178.09 crore from ₹ 147.73 crore recorded in the corresponding period of the previous year.
Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) were at 0.99 per cent and 0.76 per cent, respectively, in Q4 FY 2025, up from 0.21 per cent and 0.02 per cent in Q4 FY 2024. The company stated in its investor presentation that it is strengthening its debt management systems as a preventive step.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Delhi-based venture capital fund raises stake in this LIC-owned NBFC stock. Check details
Delhi-based venture capital fund raises stake in this LIC-owned NBFC stock. Check details

Mint

time6 minutes ago

  • Mint

Delhi-based venture capital fund raises stake in this LIC-owned NBFC stock. Check details

LIC-owned stock: Shares of Paisalo Digital snapped their three-day winning run on Friday, July 25, even as Equilibrated Venture CFlow acquired a stake in the company. The selloff in the Indian stock market and profit booking after a stellar run over the last few days likely promoted a decline in the small-cap stock, which is part of Life Insurance Corporation of India's (LIC) portfolio. According to a filing shared by Paisalo Digital, the Delhi-based venture capitalist Equilibrated Venture CFlow acquired 74,70,000 shares of the company via the open market, representing a 0.82% stake. The stake was acquired by the company on July 24 and July 25, as per the filing. With this, Equilibrated Venture CFlow's stake in the LIC-owned NBFC stock rose to 16.50% from 15.67% earlier. According to the latest shareholding pattern filed by the company earlier this month, LIC owns a 1.12% stake or 77,59,511 shares. Another PSU life insurer, SBI Life Insurance, holds an 8.96% stake. The small-cap NBFC stock also remained in focus this entire week following the announcement of its Q1 results for FY26 and dividend record date.

Why are investors selling Bajaj Finance shares post Q1? Stock falls 6%
Why are investors selling Bajaj Finance shares post Q1? Stock falls 6%

Business Standard

time2 hours ago

  • Business Standard

Why are investors selling Bajaj Finance shares post Q1? Stock falls 6%

Bajaj Finance shares nosedived on the BSE today as investors turned cautious on the near-term outlook post the NBFC's Q1 results. Read to find out investment strategy in the stock Nikita Vashisht New Delhi Listen to This Article Bajaj Finance share price today: A cautious commentary from the management of Bajaj Finance, post the June quarter results, fretted the non-bank finance company's (NBFC's) investors on Friday, July 25. The shares of the consumer financier nosedived 6.3 per cent on the BSE to a low of ₹897.65 per share in the intraday trade. The stock weighed on the benchmark BSE Sensex index, pushing it over 400 points lower on the BSE at 9.50 AM. It accounted for nearly a fifth of the index's losses at the time of writing this report. CATCH STOCK

Bajaj Finance, Nifty's 2025 topper, faces Rs 38,000 crore reality check. What should investors do?
Bajaj Finance, Nifty's 2025 topper, faces Rs 38,000 crore reality check. What should investors do?

Time of India

time2 hours ago

  • Time of India

Bajaj Finance, Nifty's 2025 topper, faces Rs 38,000 crore reality check. What should investors do?

The market's love affair with Bajaj Finance came to a brutal end on Friday as the year's top-performing Nifty stock crashed over 6%, wiping out Rs 38,000 crore in market value after brokerages sounded alarm bells over rising credit costs and growth concerns despite a seemingly robust Q1 performance. The NBFC giant, which had delivered a stellar 32% year-to-date return to claim the crown as 2025's best Nifty performer, tumbled below the psychological Rs 900 mark to hit lows of Rs 897.65 on the BSE as investors grappled with a harsh reality check on asset quality deterioration. Explore courses from Top Institutes in Please select course: Select a Course Category Management Data Science Others Healthcare PGDM Digital Marketing Product Management Technology Public Policy Leadership Operations Management Degree healthcare others Data Analytics Artificial Intelligence Data Science MCA MBA Design Thinking Cybersecurity Finance Project Management CXO Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details The selloff erupted despite Bajaj Finance posting a strong 22% year-on-year growth in standalone profit after tax at Rs 4,133 crore during Q1FY26, supported by robust 24% YoY AUM growth and an impressive customer addition of 4.7 million new customers with 13.5 million new loans booked. But beneath the headline numbers lurked troubling signs that sent shockwaves through the investment community. Credit Cost Reality Bites The most damaging revelation was credit costs surging to 2.02% during Q1FY26, significantly above the company's guided range of 1.85-1.95%, largely driven by stress in the MSME portfolio and two and three-wheeler segments. UBS delivered the harshest verdict, slashing its rating to 'Sell' with a target price of Rs 750. "MSME segment (12% of book) seeing increased stress," UBS noted, highlighting the vulnerability in a key growth driver. Also Read | Bajaj Finance Q1 Results: PAT grows 22% YoY to Rs 4,765 crore, NII jumps 22% Bernstein was equally pessimistic, maintaining its underperform rating with a Rs 640 target price, citing "still elevated credit costs (202 bps vs guidance of 185-195 bps)" that resulted in a return on assets of 4.5%, right in the middle of the company's recently reduced target RoA range of 4.3-4.7%. JPMorgan delivered perhaps the most stinging assessment, downgrading the stock to Neutral from Overweight with a Rs 970 target price. While acknowledging Bajaj Finance "remains best quality NBFC with rare combination of high growth & quality," JPM warned that "a pick-up in mortgage attrition, weakness in MSME AQ & continued weakness in 2/3W loan quality suggest possibility of negative revisions" to estimates. Also Read | Bajaj Finance shares slide 6% after Q1 show fails to cheer D-Street Succession Uncertainty Adds to Woes Adding to investor anxiety, UBS highlighted that the "successor to Rajeev Jain will be announced only closer to the end of his tenure, clearing any near-term uncertainty." Jefferies provided some clarity, noting that "Rajeev will submit a report on succession to the board in 6 months, but plan to keep it internal till later." Macquarie, maintaining its underperform rating with an ₹800 target price, delivered a scathing assessment: "Shares not factoring decline in growth guidance, higher credit costs." The brokerage noted that "stress in the SME segment results in high credit costs" and highlighted that the stock trades at a premium 4.4x FY27E P/B multiple. Prabhudas Lilladher maintained its cautious stance with a Hold rating and ₹900 target price, warning that "valuation continues to be rich (trading at 1-year forward of P/ABV of 4.6x)." The brokerage expects "a moderation in FY26, factoring a healthy trend in early-stage delinquencies." The NBFC's management has, however, maintained its medium-term growth guidance, while indicating a slowdown in the MSME and auto segments (winding down the captive book, which is seeing elevated stress). The company maintained its full-year credit cost guidance and expects lower credit costs in H2FY26, with management expressing confidence about seeing "a further ~5-10bps expansion on account of a rate cut by end-FY26." Some Brokerages Hold Faith Not all analysts turned bearish. Jefferies maintained its Buy rating, rolling forward its price target to ₹1,100 from ₹1,044. "We trim earnings estimates for FY26-28 by 1-2% to factor lower AUM growth and higher credit costs. Still, we see a healthy growth of 23% in AUMs over FY25-28, earnings CAGR of 23% and ROE of 20%," Jefferies noted. Emkay Global also maintained its Add rating with a revised target price of ₹1,000, up from ₹925 earlier, "implying FY27E standalone P/B of 5x." JM Financial kept its Buy rating with a ₹1,000 target price, though acknowledged that "near-term concerns around growth/asset quality and rich valuations might limit upside." The dramatic reversal in Bajaj Finance's fortunes presents investors with a classic dilemma: is this a temporary setback in a growth story or the beginning of a more serious deterioration? The bulls point to the company's track record of "sector-leading growth/RoE on cross-cycle basis" and management's confidence in containing credit costs within the guided range. The company's plan to add 14-16 million new customers in FY26 suggests growth momentum remains intact. However, the bears highlight mounting stress in key segments like MSME and two/three-wheelers, credit costs running above guidance, and rich valuations that leave little room for disappointment.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store