Earnings Alerts

Bajaj Finance Ltd (BAF) Earnings: 2Q Net Income of 40 Billion Rupees Falls Short of Estimates

By October 22, 2024 No Comments
  • Bajaj Finance’s net income for the second quarter reached 40 billion rupees, marking a 13% increase year-over-year, but it fell short of the estimated 41.2 billion rupees.
  • The company reported revenue of 170.9 billion rupees, which is a 28% year-on-year increase and slightly above the estimated 170.45 billion rupees.
  • Provision for loan losses rose to 19.09 billion rupees, representing a 14% increase quarter-over-quarter, surpassing the estimated 17.58 billion rupees.
  • Net interest income was reported at 88.38 billion rupees.
  • Assets under management were recorded at 3.74 trillion rupees, just below the estimate of 3.76 trillion rupees.
  • Analyst recommendations include 24 buy ratings, 6 hold ratings, and 5 sell ratings.

Bajaj Finance Ltd on Smartkarma

Analyst coverage of Bajaj Finance Ltd on Smartkarma reflects mixed sentiments. Ankit Agrawal, CFA, published a bullish report titled “Bajaj Finance: Mixed Q1, However Growth Trajectory Remains Intact.” The report highlighted robust AUM growth but noted elevated credit costs and NIM compression affecting profitability. In another bullish report by Ankit Agrawal, CFA, “Bajaj Finance (BAF): Strengthening Franchise to Sustain Growth Longevity,” the focus was on sustaining high growth through strengthened franchise despite some NIM compression challenges.

On the contrary, Pranav Bhavsar‘s bearish report, “Earnings Playbook | Bajaj Finance Ltd (BAF IN) | Troubling Rural B2C Business,” raised concerns about Bajaj Finance’s negative commentary on its rural B2C business, indicating potential challenges in that segment. Overall, the analyst coverage on Smartkarma provides a comprehensive view of Bajaj Finance, highlighting both positive growth potential and areas of caution for investors to consider.


A look at Bajaj Finance Ltd Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE3.2

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

Based on Smartkarma Smart Scores, Bajaj Finance Ltd seems to have a positive long-term outlook. With strong scores in Dividend and Growth, the company appears to be poised for solid performance in the future. Although the Resilience score is lower, the company’s momentum and overall value show promising signs for potential growth.

Bajaj Finance Limited, a financial services company operating in India, offers a variety of financial services through its branches. With respectable scores in Dividend, Growth, and Momentum, the company demonstrates strength and potential in the financial sector. While improvements may be needed in the Resilience factor, Bajaj Finance Ltd‘s overall outlook seems bright for long-term success.


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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