Bajaj Finance Share Price Today: Shares of the private non-banking lender rose 3 per cent to Rs 6,254 in Thursday’s trade on the BSE after the firm posted a consolidated net profit of Rs 3,158 crore for the quarter ended March, 30 per cent higher compared to Rs 2,419 crore in the corresponding quarter of last year.
Revenue from operations of the financial services firm came in at Rs 11,359.59 crore, up 31.68 per cent from Rs 8,626.06 crore in the year-ago quarter.
The Board of Directors have recommended a dividend on equity shares at the rate of Rs 30 per share, the company said in a regulatory filing.
Net interest income for 04 FY23 increased by 28 per cent to Rs 7,771 crore from Rs 6,061 crore.
Bajaj Finance is the lending arm of Bajaj Finserv. Even Bajaj Finserv raced to become the best performer on Nifty 50 index, by gaining two per cent.
Should you ‘buy’, ‘sell’ or ‘hold’ Bajaj Finance’s stock? Here’s what analysts say:
Motilal Oswal said that “customer acquisition and the new loan trajectory have been strong. The momentum will only get stronger ahead, with the digital ecosystem – app, web platform and full-stack payment offerings – in place. The company should be able to offset the NIM (net interest margin) compression in FY24 with lower operating cost ratios and credit costs.”
Motilal Oswal’s FY24/FY25 estimates have seen a minor increase to factor in the higher AUM growth guidance and expect the company to deliver a PAT CAGR of 24 per cent over FY23-FY25 and a RoA/RoE of 4.6 per cent/24 per cent in FY25.
Maintains ‘buy’ with a Target Price of Rs 7,080 (premised on 5.3x FY25E BVPS).
Morgan Stanley maintained an ‘overweight’ rating on Bajaj Finance post-March quarter results with a target price of Rs 8,000.
Consensus estimate revisions remain positive. The return on equity (ROE) profile (i.e., BVPS growth) is the key value creation metric to be tracked, the brokerage said in a note.
Bajaj Finance has raised loan growth guidance. P/BV and P/E are trading near 1-S.D. below the 5-year mean. The global investment bank expects that rates are likely to peak out soon and that should act like a tailwind.
Global brokerage firm Jefferies maintained its ‘buy’ rating on Bajaj Finance with a target price of Rs 7,280.
“We see 26 per cent CAGR in profit over FY23-26 aided by loan growth and lower NIMs that are compensated by operating efficiencies. Against the backdrop of recent price correction in price/valuations to LT average, strong growth outlook and catalysts like peaking of rates/ potential to enter credit cards market, we see favourable risk-reward,” it said.
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