Bajaj Finance share price rises over 2% after Q1 results; should you buy it?
₹7,596.95 against the previous close of ₹7,431.05 and rose over 2 per cent to ₹7596.95. Shares of Bajaj Finance have risen almost 19 per cent in the last one year against a 21 per cent gain in the equity benchmark Sensex.
Bajaj Finance Q1 Results: Bajaj Finance on Wednesday reported a consolidated net profit of ₹3,437 crore in the first quarter of FY24, up ₹32 per cent from ₹2,596.3 crore in the corresponding quarter of last year. Net interest income (NII) of the non-banking finance company (NBFC), on a consolidated basis, in Q1FY24 increased by 26 per cnet to ₹8,398 crore from ₹6,640 crore, YoY.
Bajaj Finance’s assets under management (AUM) grew by 32 per cent to ₹270,097 crore as of June 30, 2023, from ₹204,018 crore as of June 30, 2022. Read more: Bajaj Finance Q1 results: Net profit rises 32% YoY to ₹3,437 crore; asset quality improves Many brokerage firms appear to be positive about the stock as they found Bajaj Finance's Q1 numbers slightly ahead of their estimates.
Brokerage firm Motilal Oswal Financial Services maintained a buy call on Bajaj Finance stock with a target price of ₹8,800, implying an 18 per cent upside. "Bajaj Finance’s Q1FY24 reported PAT jumped 32 per cent YoY to nearly ₹34.4 billion which was in line with estimates.
The good operational performance was driven by: (a) a healthy run-rate in customer additions/new loans disbursed, (b) further asset quality improvement, and (c) YoY moderation in cost-income ratios during the quarter," Motilal Oswal observed. The brokerage firm pointed out that customer acquisitions and the new loan trajectory have been strong and the momentum will only get stronger ahead, with the digital ecosystem – app, web platform and full-stack payment offerings – in place.
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