12/08/22

Share price of Bajaj Finance rose on impressive Q1 data. See what brokerages say

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Share price of Bajaj Finance rose in early trade on July 6 after the company reported better numbers for the quarter ended June 2022.

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Bajaj Finance recorded the highest ever quarterly growth in its customer franchise at 2.7 million in Q1 FY23 and new loans booked during the period stood at 7.4 million, the company said in a press release. A year ago it was 4.6 million.

The core assets under management (AUM) stood at around Rs 2,04,000 crore as on June 30, 2022, as against Rs 1,56,115 crore as of June 30, 2021, a 31 per cent year-on-year growth. Its capital adequacy ratio (CRAR) stood at 26.2 per cent as of June 30, 2022.

Share price of Bajaj Finance

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During the quarter, the company invested Rs 2,500 crore in equity shares of Bajaj Housing Finance Limited, a wholly owned subsidiary of the company.

The company’s deposit book stood at around Rs 34,100 crore as against Rs 27,972 crore, registering an annual growth of 22 per cent.

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The Company’s Annual General Meeting is scheduled to be held on Wednesday, July 27.

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Here’s what the brokerage had to say about the stock and the company after its March quarter earnings:

Morgan Stanley

Broking house Morgan Stanley has an overweight rating on the stock with a target of Rs 8,000 per share.

It has reported healthy core AUM growth and highest ever customer acquisition. Its customer franchise grew to 60.3 million, while new loans stood at 7.4 million.

As reported by CNBC-TV18, the capital to risk (weighted) assets ratio dropped to 26.2 percent.

Bernstein

Research firm Bernstein maintains an outperform rating on the stock with a target of Rs 9,440 per share.

The company has delivered a healthy performance driven by strong balance sheet growth.

Its core AUM grew 28 per cent YoY and 6 per cent QoQ.

As CNBC-TV18 reports, detailed updates on digital transformation and asset quality are key to monitoring.

CLSA

Brokerage house CLSA has retained the sell rating on the stock and has lowered the target to Rs 5,000 from Rs 6,000 per share.

Growth has slowed from pre-Covid levels. Q1 is a seasonally strong quarter for the company and it used to grow 10%+ QoQ.

AUM growth will continue to slow, given its large subscriber base, as reported by CNBC-TV18.

At 9:18 am, Bajaj Finance was trading higher by Rs 90.50 or 1.60 per cent at Rs 5,752.55 on the BSE.

Disclaimer: The views and investment tips expressed by investment experts on iwitnessnews.in are their own and not that of the website or its management. iwitnessnews.in advises users to check with certified experts before taking any investment decision.

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