Financial services provider Bajaj Finance's June quarter net profit nearly doubled on high income from operations, sending its shares up as much as 5.4% today.
The non-banking finance company posted a net profit of 908.1 million rupees in the June quarter compared with 467.8 million a year ago. Total income rose to 4.5 billion rupees in the period from about 3 billion rupees.
Bajaj Finance lends to consumer durables, two-wheelers, mortgages and construction equipment segments and is planning to raise funds through a share sale to institutions.
At 12.28 p.m., its shares, valued by the markt at $520 million, were up 4.15% at 657.95 rupees.
They fell nearly 12 percent in the June quarter and are down about 7% so far this year.
"The company has been growing at a robust pace,"
Antique Broking, which has a 'buy' rating on the stock, said in a note on June 24.
"It is well-positioned to deliver sustainable and profitable growth which is scalable with lower risk as the company intends to focus on secured business lines. This should lead to significant re-rating of the stock," it added.
In May, a top executive had told Reuters that loan growth may slow and margins could compress in the year to March 2012 but its diversified portfolio will help cushion the impact.