Bajaj Finance Limited is a Large Cap Non-Banking Financial Company (NBFC) whose market capitalization 343,127 crores. Shares of Bajaj Finance hit 52-week high on NSE 8,050.00 and 52-week low of 18 October 2021 5,488.00 on 16 May 2022, indicating that the stock is now trading 29 percent below its 52-week high and 3.09 percent above its 52-week low. Bajaj Finance is now trading below its 5-day, 20-day, 50-day, 100-day and 200-day moving averages, yet despite this, the stock has given 52.43 per cent CAGR over the last ten years and a According to data from Value Research, 32.71 percent CAGR in the last five years.
with a market capitalization of 3,43,127 crore, making it the second largest company in the sector, and with a net profit increase of 79.67 per cent, the company announced good results for the quarter ended March 22 as it reported consolidated net profit for the quarter ended March. profit disclosed. 2,419.51 crore, up 79.67 percent from 1,346.64 crore in the same quarter last year. The company has disclosed good results for the last three quarters, and for the quarter ended March 2022, Bajaj Finance reported highest ever net sales 8,626.57 crore, highest PBDIT (Profit before Depreciation, Interest and Taxes) 5,928.80 crore, and highest operating profit for a net sales result of 68.73 per cent. The company’s net interest income (NII) for the March quarter has grown by 30 per cent year-on-year 6,068 crores, and the company also recorded highest ever consolidated profit after tax of 7,028 crore for the financial year ended March 2022. Company’s Net Interest Income (NII) up 30% YoY for the March quarter 6,068 crores, and the company also recorded highest ever consolidated profit after tax of 7,028 crore for the financial year ending March 2022. On a standalone basis, NII for Q4 FY22 grew by 32% YoY 5,672 crore, while Profit After Tax (PAT) climbed 95% yoy 2,268 crores.
In addition, the company declared dividend 20 per share. The dividend payment record date is July 1, 2022, and this equates to a dividend yield of 0.35 percent at the current share price. 5,658. According to brokerage firm Axis Securities, the company will continue to invest heavily in teams and technology for business transformation. Looking at investments for omnichannel strategy for geo-span, app platform, web platform etc. OPEX is expected to remain high and CI ratio in FY23 is likely to be in the range of 34.5-35.5%.
“The management indicated that the company does not intend to convert into a bank in the next 3 years. BAF will continue to focus on building payments and financial services business and aspires to build a client franchise of ~100 million clients over the next 4-5 years,” the brokerage has said.
Axis Securities has given Buy Rating on Bajaj Finance shares with a target price of 8200 is based on digital initiatives and business transformation approach which are significant positives for AUM growth. Further, due to increase in OPEX and slightly higher credit cost, the brokerage has reduced EPS expectations by 3/4 per cent for FY 2013-24E.