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Shares of Bajaj Finance extended losses for the second straight session after posting a disappointing December quarter (Q3) updates. The stock has plunged below the 6,000 mark on Friday, for the first time since July 2022, by declining over 2% to 5,974 per share on the BSE in early deals. Extending its fall, the stock has tanked over 9% in the last two sessions.

On Thursday, Bajaj Finance shares tumbled as much as 8% after reporting moderate growth in new loans and assets under management (AUM) for the third quarter of the current fiscal.

"Bajaj Finance reported sequential AUM growth of ~6% and 27% YoY growth. This performance was slightly lower than street expectations as 3QFY23 is usually a strong quarter led by festive demand. However, one saw the highest number of new customer addition and also booking of new loans. Deposits growth continues to remain robust thus improving its borrowing profile by making it more retail and granular. Capital adequacy remains at healthy levels and liquidity position also remains strong," said brokerage Antique Stock Broking in a note.

New customer acquisition, though highest for the quarter at 3.1 million, was slower than expected, Antique analysts said, adding that new loans booked indicated that contribution of existing customers remains significant.

“Bajaj Finance's next leg of customer acquisition via the digital mode is taking place at a relatively slower pace than our expectations. However, currently the company continues to grow strong through its existing customers, but we believe this cannot continue for long and growth can see slight moderation in the medium term. The stock has corrected in past three months on the basis of concerns mentioned above and we believe currently it is fairly valued unless the company sees strong performance again," Antique added.

The company's assets under management (AUM) grew by 27% year on year to approximately 230,850 crore as of December 2022 as compared to 181,250 crore as of December 2021.

"Bajaj Finance's Q3FY23 pre-qtr update shows some moderation in AUM growth. Growth in new loan booking was also slower at 5% YoY; QoQ growth of 15% is due to favourable seasonality (festive-period). In 3Q results, we will watch-out if this is due to shorter-term securities lending business or retail/ SME loans. Until then, softer growth can weigh on stock in near-term," as per global brokerage Jefferies.

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