- Net Income: 39.1 billion rupees, a 14% increase year-on-year, but below the estimate of 39.9 billion rupees.
- Revenue: 161 billion rupees, up 29% year-on-year.
- Gross Non-Performing Assets (NPA): 0.86%, compared to 0.85% in the previous quarter.
- Provision for Loan Losses: 16.8 billion rupees, a 28% increase quarter-on-quarter, higher than the estimate of 14.83 billion rupees.
- Operating Profit: 69.5 billion rupees, up 25% year-on-year.
- Total Costs: 108.4 billion rupees, a 36% increase year-on-year.
- Finance Cost: 56.8 billion rupees, up 38% year-on-year, slightly above the estimate of 56.6 billion rupees.
- Net Interest Income: 83.7 billion rupees, a 25% increase year-on-year.
- Assets Under Management: 3.54 trillion rupees, up 31% year-on-year, above the estimate of 3.49 trillion rupees.
- New Loan Bookings: Increased by 10%.
- Capital Adequacy Ratio: 21.7%.
- Bajaj Housing Sales: Sold INR11.50 billion worth of July 2034 bonds.
- Shares Performance: Shares fell 2.3% to 6,727 rupees on 1.93 million shares traded.
- Market Recommendations: 26 buys, 4 holds, and 4 sells.
Bajaj Finance Ltd on Smartkarma
Analyst coverage of Bajaj Finance Ltd on Smartkarma reveals contrasting perspectives. Ankit Agrawal, CFA, maintains a bullish outlook in the report titled “Bajaj Finance (BAF): Strengthening Franchise to Sustain Growth Longevity“. He highlights BAF’s positive Q4FY24 results, emphasizing strong AUM growth and customer acquisition. Despite a 21bp NIM compression, Agrawal sees significant upside potential of 75%+ at current valuations, projecting sustained high growth.
On the flip side, Pranav Bhavsar‘s bearish sentiment in the report “Earnings Playbook | Bajaj Finance Ltd (BAF IN) | Troubling Rural B2C Business” raises concerns about BAF’s rural B2C segment. Bhavsar underscores BAF’s negative commentary in this area, suggesting further investigation. In another report, “Bajaj Finance’s Catch Up”, Bhavsar discusses market trends and notes BAF among other stocks. Despite differing views, both analysts provide valuable insights for investors to consider in their decision-making process.
A look at Bajaj Finance Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors eyeing Bajaj Finance Ltd may find a mixed bag of factors influencing its long-term prospects. With a solid Growth score of 4, the company shows potential for expansion and profitability in the future. However, its Resilience and Momentum scores of 2 each indicate some challenges in weathering market fluctuations and sustaining positive performance momentum. Despite these hurdles, Bajaj Finance Ltd maintains average scores of 3 in both Value and Dividend, suggesting a stable financial standing and willingness to distribute profits to shareholders.
Bajaj Finance Limited, a prominent financial services firm in India, offers a variety of financial products through its nationwide branch network. While the company demonstrates strong growth prospects, investors should remain mindful of its resilience and momentum levels, which may impact its overall performance over the long term. With a balanced outlook across key factors like value and dividend, Bajaj Finance Ltd presents both opportunities and risks for investors seeking exposure to the Indian financial services sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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