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Bajaj Finance: Investors buy or sell shares after Q4 results, stock has jumped over 450% in 5 years

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Bajaj Finance Stock Performance: After the results, brokerage houses have a mixed opinion on the stock of Bajaj Finance. Where BoFA has remained bullish on the stock.

Bajaj Finance Stock Performance: The results of Bajaj Finance in March 2022 have been excellent. The net profit of the company has increased by more than 80 percent. This has been the highest profit of any quarter so far. Despite this, there is a strong decline in the company’s stocks on Wednesday. The company’s stock fell more than 6 percent in intraday. On Tuesday, it closed at Rs 7241 on BSE. On Tuesday, the company released its quarterly results. After the results, brokerage houses have a mixed opinion on the stock of Bajaj Finance. Where BoFA has remained bullish on the stock. At the same time, CLSA remains on the selling point. In such a situation, what should investors do in the stock now. They stay in the stock or sell it. Bajaj Finance has been a multibagger stock. In the last 5 years, investors have got more than 450 percent returns in it.

Bajaj Finance Stock Performance: What is the opinion of the brokerage house?

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Brokerage house CLSA has maintained a sell position on Bajaj Finance. Also, the target price per share has been reduced to Rs 6000. The brokerage says that the company’s profits have been weaker than expected. The yield is only weak at 1 per cent on a quarterly basis. Due to which NII was also 6 per cent weaker than the estimate, which affected profits. The brokerage has cut the EPS estimate for FY23/24 from 8 per cent to 9 per cent.

BoFA retains buy point on Bajaj Finance. Also, the target price per share has been kept at Rs 8345. The brokerage says that the company is ready for a strong growth revival in FY23. The company has performed well in FY22. Strong growth is expected with the asset quality outlook improving. The net interest margin of the company has remained stable. There is no impact on the funding cost of the company. There has been an increase of about 80 percent in the net active users on the digital app platform.

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Bajaj Finance has retained the ‘Overweight’ rating on Morgan Stanley. Also, the target price per share has been kept at Rs 8750. At the same time, JP Morgan has kept a ‘neutral’ rating on Bajaj Finance and has given a target price of Rs 8400 per share. Jefferies has a ‘Hold’ rating on the stock and a target of Rs 7,600.

Domestic brokerage Motilal Oswal has maintained a buy on Bajaj Finance stock. Also, the target price per share has been kept at Rs 8350. The brokerage says that the March 2022 quarter results have proved to be a better quarter for Bajaj Finance. The company has an all-round performance. The brokerage believes that in the next 2 years, the company’s AUM can be more than 25 percent CAGR. The company has got support due to the digital ecosystem.

Bajaj Finance: Record profit in Q4

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Bajaj Finance’s net profit in the March 2022 quarter jumped nearly 80 percent to Rs 2420 crore. This has been the record profit of the company so far. The company’s consolidated net profit stood at Rs 1346 crore in the March 2021 quarter. The company has also announced to give interim dividend at the rate of Rs 20 per share to its shareholders.

The company’s Net Interest Income (NII) jumped 30 per cent year-on-year to Rs 6068 crore from Rs 4659 crore during the March 2021 quarter. The Assets Under Management (AUM) of Bajaj Finance grew by 29 per cent to Rs 1.97 lakh crore during the fourth quarter of FY22. At the same time, the company’s gross NPA stood at 1.60 percent in the quarter ended March 2022, while it was 1.79 percent during the quarter ended March 2021.

Bajaj Finance: Stock has been multibagger

The stock of Bajaj Finance has been a multibagger stock. If we look at the returns of the stock in the last five years, then investors have got a strong return of more than 468 percent. That is, if someone had invested Rs 1 lakh in this stock five years ago, then today its value would have been more than 5.5 lakh. The stock has gained about 50 per cent in the last one year.

(Disclaimer: The investment advice here is given by the brokerage house. These are not the views of iwitness News. Please consult your advisor before investing.)

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