Pune-headquartered NBFC major, Bajaj Finance witnessed a great buying sentiment in Wednesday’s trading session. Bajaj Finance and its parent Bajaj Finserv were the biggest contributors to the Sensex today. Investor optimism in Bajaj shares has come after Bajaj Finance announced the provisional figures for the first quarter of FY13, ahead of its results. The stock skyrocketed as the company posted strong growth in terms of new loans and customer franchises, meanwhile, continued to maintain a strong liquidity position.
Bajaj Finserv and . Both Bajaj Finance The Sensex was the top gainer with gains of over 4.5% each, followed by other heavyweights like HUL, Maruti Suzuki, Asian Paint and Titan.
Bajaj Finance’s strong performance in Q1FY23 fuels bullish sentiment at its core Bajaj Finserv Also during the day.
Shares of Bajaj Finance closed on BSE above 5,917.60 255.55 or 4.51%. Shares touched intraday highs 5,932.95 each during business hours.
Bajaj Finance has overtaken ITC to become the 11th most valuable company on the back of strong gains on BSE. Presently, the market cap of Bajaj Finance is around 3,58,268.80 crore as compared to market valuation of ITC 3,56,388.56 crores.
As of June 5, ITC held the title of 11th Most Valuable Company on BSE. However, this has changed after Bajaj Finance has moved up to the 11th position so far.
As on June 30, 2022, the customer franchise of Bajaj Finance increased to 60.3 million from 50.5 million as of June 30, 2021. Also, the company registered the highest ever quarterly growth of 2.7 million in its customer franchises in the first quarter of FY23.
In addition, the company booked new loans worth 7.4 million in Q1FY23, up from 4.6 million in the same quarter last year.
Improvements in Core Asset Under Management (AUM) of Bajaj Finance 204,000 crore by June 2022 as compared to 156,115 crore till June 2021. It means that in Q1FY23, Core AUM has increased by 31% or approx. 11,900 crores.
Overall deposit book up 22% 34,100 crore in Q1FY23 as compared to 27,972 crore in Q1FY22. Liquidity position of the company remains strong with consolidated net liquidity surplus 11,550 crore till June 30, 2022.
Meanwhile, the company remained well capitalized with a Capital Adequacy Ratio (CRAR) of around 26.2% as on June 30, 2022.
Bajaj Finance investments during the quarter 2,500 crore in equity shares of Bajaj Housing Finance, a wholly owned subsidiary of the company.
On share performance, Yash Gupta, Equity Research Analyst, Angel One said, “Overall the Q1FY23 quarter update looks very strong for Bajaj Finance and the company is back to its pre-Covid growth momentum.”
Gupta said, “We expect Bajaj Finance to continue this growth momentum for the next few quarters. Given the current valuation on Bajaj Finance and comparison with the peer group, we have a neutral outlook.”
In Bajaj Finance’s annual report for the financial year FY22, which was released on July 4, Chairman Sanjeev Bajaj said that he expects Bajaj Housing Finance to become a truly significant presence in the housing finance market. Also, he expects Bajaj Financial Securities to grow impressively in the coming years.
Both Bajaj Housing and Bajaj Financial Securities are wholly owned subsidiaries of Bajaj Finance.
The Chairman is optimistic about Bajaj Finance’s growth and ability to outperform and deliver greater shareholder value.