Latest news with #RajeevJain
Mint
2 days ago
- Business
- Mint
These three large-cap stocks are trouncing the Sensex in 2025—so far
India's benchmark indices have been treading water this year. Despite upbeat earnings from select sectors, the Sensex has inched up just 3.4% so far in 2025, with the Nifty rising 4.25% amid a mix of global uncertainty, volatile foreign fund flows, sticky inflation, and high oil prices. Add the Reserve Bank of India's cautious policy stance, and it's clear why investors have had little to cheer. Yet, a handful of heavyweight stocks have bucked the trend—surging over 25% and delivering market-beating returns. Read this | This lender to the railways is getting off track to get back on track In this piece, we spotlight three such large-cap outperformers, unpack the catalysts behind their rally, and assess whether their momentum can hold. Can these stocks still deliver upside, or is the best already behind them? #1 Bajaj Finance Bajaj Finance has rallied 29% year-to-date, handily outperforming the broader market. The bounce came after a surprise rebound in the December 2024 quarter, which restored investor confidence in the company's ability to grow despite macro headwinds. A stalwart in India's non-bank lending space, Bajaj Finance posted a 23% year-on-year rise in net interest income to ₹9,380 crore for Q4FY25, while net profit jumped 18% to ₹4,310 crore—fuelled by operational efficiencies and a growing loan book. The rally got an additional boost after the Reserve Bank of India lowered risk weights on bank lending to non-banking finance companies (NBFCs), a move that could reduce borrowing costs and support the company's expansion plans. Investor sentiment was further lifted when Anup Kumar Saha was announced as the incoming managing director, succeeding long-time head Rajeev Jain. Saha, a seasoned insider, is seen as well-positioned to drive the firm's ambitious five-year plan, dubbed 'BAF 3.0." That roadmap aims to grow assets under management (AUM) to ₹4 trillion and the customer base to as high as 210 million by FY29. The company also expects to disburse more than 40 million loans and expand its retail credit market share to over 4%. Over the past five years, the company has scaled up its loan book 2.4 times, while growing net profit at a compounded annual growth rate (CAGR) of 26%. Additionally, consistently low non-performing assets (0.30%-0.4% since FY18), and a solid return on equity (RoE) of 17.6%, Bajaj Finance remains one of the most dependable names in Indian financial services. For FY26, the company expects to add 14–16 million customers and grow AUM by 24–25%, supported by new business lines. It has also guided for return on assets (RoA) of 4.4-4.6% and RoE of 19–20%, aided by surplus capital. Axis Securities has a 'Buy' rating with a target of ₹10,500. Still, the stock's premium valuation—5.7x price-to-book versus an industry average of 1.9x—suggests that much of the optimism may already be baked in. Read this | Rich valuation pricks Bajaj Finance as it cuts guidance #2 Cholamandalam Investment and Finance The second stock riding the NBFC rally is Cholamandalam Investment and Finance Co. Ltd (CIFC), up 27.8% in 2025. Its steady loan book expansion, strong asset quality, and consistent profitability have made it a standout performer in the sector this year. CIFC, a part of the Chennai-based Murugappa Group, provides vehicle finance, home loans, and loans against property. It has a strong foothold in vehicle finance—accounting for 58% of its assets under management (AUM)—and has been gradually diversifying into home loans and SME lending, with a focus on self-employed borrowers. The company delivered a solid performance in FY25, with broad-based growth across disbursements, profitability, and asset quality. Total income rose 36% year-on-year to ₹13,570 crore, driven by a 14% rise in disbursements to ₹1.0 trillion. Net profit grew 24% to ₹4,259 crore. Asset quality also improved. Gross Stage 3 assets declined to 2.81% in March 2025 from 2.91% in December, while net non-performing assets (NPAs) fell to 2.63%. The company maintained a strong capital adequacy ratio of 19.75%, comfortably above the 15% regulatory minimum. Importantly, FY25's performance is part of a broader trend. Over the past five years, CIFC has reported a 27% CAGR in AUM, a 32% CAGR in net profit, and a 40% CAGR in disbursements—reflecting consistent execution across business segments. As part of the Murugappa Group, CIFC benefits from group synergies and a wide client base. Its five-year average return on equity stands at a healthy 18%, underlining its ability to scale profitably while keeping risk under control. Looking ahead, the company expects 20–25% AUM growth in the medium term, driven primarily by non-vehicle portfolios. It also plans to enter gold loans and consumer durable financing in FY26, targeting existing customers who currently borrow from outside sources. To support this, it will add 120 dedicated gold loan branches—requiring specific infrastructure such as vaults and tighter controls—in the South and East, where pilots are underway. Axis Securities expects robust momentum to continue, led by sustained growth in the vehicle finance portfolio and accelerating traction in newer segments, supporting a projected 24% CAGR in AUM over FY25–27E. The largely fixed-rate VF book, combined with a declining cost of funds, is expected to support margins. Axis has a 'Buy' rating on the stock with a target price of ₹1,780. Still, at a price-to-book multiple of 5.4x—well above the industry average of 1.9x—the stock isn't cheap. #3 IDBI Bank IDBI Bank has surged 31% in 2025, far outperforming the Sensex, driven by a mix of reform momentum and renewed investor interest as the government pushes ahead with its strategic disinvestment plans. The spotlight returned to IDBI Bank after the Centre reiterated its intention to complete the long-pending stake sale by the end of the year. Together, the government and Life Insurance Corp. of India (LIC) currently hold over 94% of the bank. As part of the proposed divestment, they aim to sell a combined 61% stake—split roughly equally between the government's 30.48% and LIC's 30.24%. The revived timeline has rekindled market interest. While the Centre no longer sets explicit disinvestment targets, the IDBI stake sale is expected to be a key contributor to FY26's budget estimate for miscellaneous capital receipts, pegged at ₹47,000 crore. A successful divestment could bring in private capital, strengthen management autonomy, and improve strategic execution—unlocking further value. Even before the divestment, IDBI Bank's fundamentals have steadily improved. Net profit has grown at a 21% CAGR over the past five years, driven by rising advances and improved core income. Return on equity has risen from just 4% to 13.5% in FY25, reflecting the success of its turnaround strategy. In FY25, the bank posted a record net profit of ₹7,656 crore. Total business (deposits plus net advances) crossed ₹5 trillion for the first time. Asset quality also strengthened sharply. Gross NPAs fell to 2.98% from 4.53% a year ago, while net NPAs dropped to just 0.15% from 0.34%. The provision coverage ratio rose to 99.48%, including technical write-offs. Capital buffers remain robust. The capital adequacy ratio improved by 279 basis points year-on-year to 25.05%, with Tier 1 capital at 23.51%. On the disinvestment front, shortlisted bidders have completed due diligence and are reviewing the bank's data room. Negotiations over the share purchase agreement are currently in progress. Meanwhile, the stock trades at a price-to-book multiple of 1.8x—above its historical median of 1.3x and the industry average of 1.3x. Also read | This small-cap has already gained 1,000%. Can AI fuel its next leap? Still, the rally hinges on timely execution of the stake sale. Any regulatory delays or shifts in government stance could dampen sentiment. With much of the upside likely priced in, the room for error remains narrow. Conclusion These large-cap stocks have clearly outperformed the Sensex in 2025—but their sharp rallies call for measured optimism. Much of the good news may already be priced in, leaving limited margin for error. Valuations for some names now exceed historical averages, increasing vulnerability to earnings misses, policy shifts, or broader market volatility. For more such analysis, read Profit Pulse. With global uncertainties still in play, markets may stay choppy in the near term. Investors would do well to stay anchored to fundamentals, avoid chasing momentum, and consider staggered entries over lump-sum bets. About the author: Ayesha Shetty is a research analyst registered with the Securities and Exchange Board of India. She is a certified Financial Risk Manager (FRM) and is working toward the Chartered Financial Analyst (CFA) designation. Disclosure:The author does not hold shares in any of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers should conduct their own research and consult a financial professional before making investment decisions.
Mint
3 days ago
- Business
- Mint
Bajaj Finserv promoters to sell up to 1.9% stake worth ₹5,828 cr via block deal
Jamnalal Sons Pvt. Ltd and Bajaj Holdings & Investment Ltd, both part of Bajaj Finserv Ltd's promoter group, are slated to offload up to 31 million shares, representing a 1.9% stake in the company, via block deals, according to the term sheet of the transaction. Bajaj Finserv Ltd is the holding company for the financial services businesses of the Bajaj Group. As of March 2025, promoter entities held approximately 60.64% stake in the company, as per the shareholding data on BSE. The document showed that the base deal is worth ₹ 4,750 crore with an option to increase the transaction by ₹ 1,078 crore, which allows the sellers to sell extra shares if there is strong demand. The indicative floor price for this deal is set at ₹ 1,880 per equity share, which implies a 3.3% discount to Thursday's closing price of ₹ 1,943.50 on the BSE, as per the term sheet. Kotak Securities is handling the transaction. Bajaj Finserv Ltd reported a 14% year-on-year rise in consolidated net profit to ₹ 2,417 crore for the quarter ended March 2025. Total consolidated income for the quarter grew to ₹ 35,596 crore, compared to ₹ 32,042 crore in the January–March quarter of the previous fiscal. According to a 5 May report by Mirae Asset Sharekhan, Bajaj Finance's earnings growth was healthy (in-line) at 19% year on year, but the management has revised guidance for FY26 slightly on the lower side with respect to the return ratio and assets under management growth. The brokerage believes strong growth visibility in the lending business and a healthy medium to long-term outlook for both insurance businesses could act as a positive trigger for strong consolidated earnings going forward. Moreover, scaling up of the new business would further support performance, which has not been factored in the brokerage's valuation. Mirae Asset Sharekhan has a 'buy' rating on the stock with a target price of ₹ 2,350. Kotak Institutional Equities also remains positive about Bajaj Finserv's ability to steer business to gain market share and profitability. 'With a complete stake in the insurance ventures at the group and the group's star CEO, Rajeev Jain, joining the Board (though in a non-executive capacity), we expect the transformation exercise at group companies to gather momentum,' highlighted the Kotak report dated 1 May. That said, any decline in the performance of its subsidiaries could weigh on the company's earnings growth and overall profitability.
Mint
3 days ago
- Business
- Mint
Bajaj Finserv promoters to sell up to 1.9% stake worth ₹5,828 cr via block deal
Jamnalal Sons Pvt. Ltd and Bajaj Holdings & Investment Ltd, both part of Bajaj Finserv Ltd's promoter group, are slated to offload up to 31 million shares, representing a 1.9% stake in the company, via block deals, according to the term sheet of the transaction. Bajaj Finserv Ltd is the holding company for the financial services businesses of the Bajaj Group. As of March 2025, promoter entities held approximately 60.64% stake in the company, as per the shareholding data on BSE. The document showed that the base deal is worth ₹ 4,750 crore with an option to increase the transaction by ₹ 1,078 crore, which allows the sellers to sell extra shares if there is strong demand. The indicative floor price for this deal is set at ₹ 1,880 per equity share, which implies a 3.3% discount to Thursday's closing price of ₹ 1,943.50 on the BSE, as per the term sheet. Kotak Securities is handling the transaction. Bajaj Finserv Ltd reported a 14% year-on-year rise in consolidated net profit to ₹ 2,417 crore for the quarter ended March 2025. Total consolidated income for the quarter grew to ₹ 35,596 crore, compared to ₹ 32,042 crore in the January–March quarter of the previous fiscal. According to a 5 May report by Mirae Asset Sharekhan, Bajaj Finance's earnings growth was healthy (in-line) at 19% year on year, but the management has revised guidance for FY26 slightly on the lower side with respect to the return ratio and assets under management growth. The brokerage believes strong growth visibility in the lending business and a healthy medium to long-term outlook for both insurance businesses could act as a positive trigger for strong consolidated earnings going forward. Moreover, scaling up of the new business would further support performance, which has not been factored in the brokerage's valuation. Mirae Asset Sharekhan has a 'buy' rating on the stock with a target price of ₹ 2,350. Kotak Institutional Equities also remains positive about Bajaj Finserv's ability to steer business to gain market share and profitability. 'With a complete stake in the insurance ventures at the group and the group's star CEO, Rajeev Jain, joining the Board (though in a non-executive capacity), we expect the transformation exercise at group companies to gather momentum,' highlighted the Kotak report dated 1 May. That said, any decline in the performance of its subsidiaries could weigh on the company's earnings growth and overall profitability. The recent rebound in Indian equities, after correcting more than 10% from its peak, has reignited institutional interest in block deals, according to experts. These large trades are gaining momentum once again, providing a fillip to India's equity capital markets at a time when IPO activity remains subdued and market volatility persists. As reported by Mint, institutional investors lined up four block deals worth nearly ₹ 3,500 crore on 4 June.
Finextra
16-05-2025
- Business
- Finextra
Bajaj Finance moves to Pennant cloud-based lending tech
Pennant Technologies, a leading financial technology company, today announced the successful completion of a landmark core lending transformation for Bajaj Finance Ltd., India's largest non-bank lender and part of Bajaj Finserv Ltd. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The initiative transitioned from a monolithic loan management system to pennApps Lending Factory, a modern, scalable, and agile digital lending platform. This transformation has streamlined Bajaj Finance's retail, commercial, and business loan operations, enabling it to manage over 50 million loans seamlessly while delivering enhanced agility, operational resilience, and customer-centric experiences across the lending lifecycle. The transition to a new-age, cloud-based platform is the largest of its kind implemented in the financial services sector in India. 'Bajaj Finance is driven by a vision of continuous innovation, operational excellence, and of delivering customer delight using technology,' said Rajeev Jain, Vice Chairman, Bajaj Finance. 'Our partnership with Pennant is enabling us to bring this vision to life through simplified customer experiences, accelerated growth and enhanced value for our stakeholders.' From Complexity to Simplicity: Unifying Lending on a Single Platform Previously, Bajaj Finance operated a long-serving loan management system that had effectively supported its growth for years. However, as the lending landscape evolved — with increasing regulatory complexity, rising operational costs, and changing customer expectations — the institution recognised the need for a more agile, scalable, and digital-first platform. This prompted a strategic transformation to future-proof its lending operations and deliver enhanced value across the board. The transition to pennApps Lending Factory marked a significant leap forward, modernising lending operations across various loan products, including consumer finance, retail, housing, gold, microfinance, professional, commercial, loans against property, and corporate portfolios. Today, Pennant's robust loan management system powers Bajaj Finance's entire lending ecosystem with agility, resilience, and scale. 'What started as a focused engagement to modernise specific lending capabilities quickly evolved into an enterprise-wide transformation and a strategic partnership,' added Mudit Mehrish, Chief Information Officer, Bajaj Finance. 'Today, our lending operations run seamlessly on pennApps Lending Factory, enabling us to innovate faster, scale effortlessly, and deliver superior customer experiences.' Tangible Business Impact Across Lending Operations The transformation has delivered measurable improvements: • Scale & Flexibility: Managing 27+ loan product variants across 50 million+ loan accounts on a single, composable, resilient platform. • Operational scale with cost efficiency: Significant reduction in loan servicing costs by transitioning to a unified platform. Strategic Partnership Built for the Future 'We are proud to partner with Bajaj Finance on this transformative journey,' said Pradeep Varma, Founding Director & MD, Pennant Technologies. 'In a rapidly evolving lending landscape, our mission is to equip financial institutions with platforms that power today's operations and enable tomorrow's growth. This transformation is a testament to the strength of pennApps Lending Factory in driving business value.' The project involved successfully migrating Bajaj Finance's entire lending portfolio — spanning secured and unsecured products — making it one of the most significant data migration initiatives in the global lending industry. With this milestone, Pennant has reinforced its position as a trusted transformation partner for banks and financial institutions, helping them reimagine customer experiences, accelerate time to market, and thrive in a digital-first world. pennApps Lending Factory has garnered recognition from prominent analysts and industry organisations, including Gartner, Everest Group, Chartis Research, and NASSCOM, for its innovation, scalability, and composability.
Hindustan Times
12-05-2025
- Lifestyle
- Hindustan Times
Want your kitchen to feel 10x more luxe without spending a fortune? 5 budget-friendly upgrades you can do in a day
So your kitchen doesn't exactly scream 'Pinterest board' but a full renovation sounds like chaos, dust and a budget that eats into your vacation fund? Fair enough but the good news is that you do not need to knock down walls or empty your savings to give your kitchen the glow-up it deserves. In an interview with HT Lifestyle, Rajeev Jain, Managing Director at RN Faucets Pvt. Ltd., asserted that you just need to tweak the right details and start where the water flows. He suggested - If yours still creaks, leaks, or looks like it belongs in a 90s sitcom, it's time. Swapping it out is probably the easiest, highest-impact upgrade you can make in one afternoon. Go for a design that feels modern without trying too hard. Or a single-lever mixer that gives you temp control with one smooth flick. It's a simple fix, but it changes how your entire kitchen feels to use. That stiff shut-off valve under the sink? Replace it with one that actually works when you need it. The fittings behind the scenes? Switch to ones that don't corrode or leak after a couple of seasons. You don't see these parts but they decide whether your kitchen holds up or becomes a maintenance headache. If your current setup makes you dread doing the dishes, that's your sign. Add a dual-mode spray, a clean-lined soap dispenser, or even just a better sink coupling that doesn't trap every crumb from last night's late-night snack. These are small moves but they hit differently when the space starts to feel dialed in. You don't need a fancy pendant light imported from Italy. Even swapping in brighter, crisper under-cabinet LEDs can take your kitchen from 'dimly functional' to 'why does this look so good on camera?' in minutes. The point is, a kitchen glow-up does not have to mean blueprints and power tools. It can mean knowing which pieces to swap, where to invest just a little, and how to make daily routines feel a whole lot better. Sometimes, it is just one sleek faucet away from feeling like you hve got your whole life together because let's be real, renovations are expensive but good taste? That is always within reach.
