External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>ICICI Securities research report onBajaj Finance Bajaj Finance (Bajaj) is the only NBFC in India that prioritises customer ‘ownership’ over mere ‘lending’.</li><li>Providing financial solutions to India’s burgeoning aspirational middle class forms the crux of Bajaj’s unique business model, which will allow the business to showcase &gt;25% growth in AUM and RoE in the near future.</li><li>The company sports the lowest cost of delivery (cost of funds + cost to assets) among NBFCs, which is backed by a strong cross-sell/up-sell engine (cross-sell customer base at &gt;60% of total) and robust digital infrastructure – arm in arm, these form the bedrock of Bajaj’s leadership now and going ahead too in the NBFC space.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ICICI Securities research report onBajaj Finance Bajaj Finance (Bajaj) is the only NBFC in India that prioritises customer ‘ownership’ over mere ‘lending’.Providing financial solutions to India’s burgeoning aspirational middle class forms the crux of Bajaj’s unique business model, which will allow the business to showcase &gt;25% growth in AUM and RoE in the near future.The company sports the lowest cost of delivery (cost of funds + cost to assets) among NBFCs, which is backed by a strong cross-sell/up-sell engine (cross-sell customer base at &gt;60% of total) and robust digital infrastructure – arm in arm, these form the bedrock of Bajaj’s leadership now and going ahead too in the NBFC space.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Finance - Standing the Test of Time – Planning, Execution and Resilience

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>Our popular, text-only weekly is back, hopefully in an improved version, and aims to be more consistent throughout this financial year.</li>
<li>The market structure and momentum seem to be positive. Upcoming earnings season and elections are likely to be key drivers going forward.</li>
<li>Stocks discussed include <a href="https://www.smartkarma.com/entities/bajaj-finance-ltd" target="_blank" data-smartkarma-citation="entities:8950:1" rel="noopener">Bajaj Finance Ltd (BAF IN)</a>, <a href="https://www.smartkarma.com/entities/sbi-cards-payment-services-limited" target="_blank" data-smartkarma-citation="entities:28662:1" rel="noopener">SBI Cards &amp; Payment Services (SBICARD IN)</a>, <a href="https://www.smartkarma.com/entities/honasa-consumer-ltd" target="_blank" data-smartkarma-citation="entities:36117:1" rel="noopener">Honasa Consumer (HONASA IN)</a> and <a href="https://www.smartkarma.com/entities/delta-corp-ltd" target="_blank" data-smartkarma-citation="entities:4627:1" rel="noopener">Delta Corp Ltd (DELTA IN)</a> </li>
</ul>


Our popular, text-only weekly is back, hopefully in an improved version, and aims to be more consistent throughout this financial year.
The market structure and momentum seem to be positive. Upcoming earnings season and elections are likely to be key drivers going forward.
Stocks discussed include Bajaj Finance Ltd (BAF IN), SBI Cards &amp; Payment Services (SBICARD IN), Honasa Consumer (HONASA IN) and Delta Corp Ltd (DELTA IN) 


[#20] Namaste India 🙏 | Bajaj Finance's Catch Up

<ul>
<li>India's Credit Landscape has changed and is facing structural and regulatory challenges.</li>
<li>The Indian regulator (RBI), particularly in its oversight of underwriting practices and the behavior of Non-Banking Financial Companies (NBFCs), is commendably proactive, positioning it ahead of the curve.</li>
<li>We expect more such steps in other parts of the credit funnel. The recent crack down along with the stock underperformance is here to stay and possibility intensify. </li>
</ul>


India's Credit Landscape has changed and is facing structural and regulatory challenges.
The Indian regulator (RBI), particularly in its oversight of underwriting practices and the behavior of Non-Banking Financial Companies (NBFCs), is commendably proactive, positioning it ahead of the curve.
We expect more such steps in other parts of the credit funnel. The recent crack down along with the stock underperformance is here to stay and possibility intensify. 


Trouble in Paradise | India Credit Landscape & Wrath of the Regulator

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


-------------
Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
-------------

<ul>
<li>Q3FY24 performance was slightly below expectation led by NIM margin compression and marginally elevated credit costs. Certain regulatory restrictions also dampened growth and profitability.</li>
<li>However, from a medium-term perspective, BAF is setting up well to be a sustained growth powerhouse. It has widened its product catalogue and is deepening the product availability per branch.</li>
<li>Led by growth tailwinds and market share gains, BAF has potential to grow at 25%+ for a prolonged period. The current headwinds seem temporary and provide a buying opportunity.</li>
</ul>


Q3FY24 performance was slightly below expectation led by NIM margin compression and marginally elevated credit costs. Certain regulatory restrictions also dampened growth and profitability.
However, from a medium-term perspective, BAF is setting up well to be a sustained growth powerhouse. It has widened its product catalogue and is deepening the product availability per branch.
Led by growth tailwinds and market share gains, BAF has potential to grow at 25%+ for a prolonged period. The current headwinds seem temporary and provide a buying opportunity.


Bajaj Finance (BAF): A Sustained Growth Powerhouse

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Healthy operating metrics: BAF added 3.85 Mn customers (+24/8% YoY/QoQ) during the qtr. vs 3.1/3.6 Mn customer YoY/QoQ, taking the total customer base to 80.4 Mn customers (+22/5% YoY/QoQ).</li><li>The company booked ~9.9 Mn loans during the qtr (+26/15% YoY/QoQ).</li><li>The management had guided to add 13-14 Mn customers in FY24 thereby exiting with a customer base of 82.5-83 Mn customers.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthy operating metrics: BAF added 3.85 Mn customers (+24/8% YoY/QoQ) during the qtr. vs 3.1/3.6 Mn customer YoY/QoQ, taking the total customer base to 80.4 Mn customers (+22/5% YoY/QoQ).The company booked ~9.9 Mn loans during the qtr (+26/15% YoY/QoQ).The management had guided to add 13-14 Mn customers in FY24 thereby exiting with a customer base of 82.5-83 Mn customers.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Finance Ltd. - Calibrated Growth Approach to Maximize Return Ratios, Maintain BUY

India

Bajaj Finance Limited is a financial services company that operates branches in India, which provide an assortment of financial services.

Bajaj Finance Ltd (BAF IN)

Bajaj Finance - Standing the Test of Time – Planning, Execution and Resilience

ICICI Securities research report onBajaj Finance Bajaj Finance (Bajaj) is the only NBFC in India that prioritises customer ‘ownership’ over mere...

ICICI Securities Limited

[#20] Namaste India 🙏 | Bajaj Finance's Catch Up

Text-only weekly returning with improvements, Stocks discussed include Bajaj Finance, SBI Cards, Honasa Consumer, and Delta Corp.

Pranav Bhavsar

Trouble in Paradise | India Credit Landscape & Wrath of the Regulator

India's credit landscape is evolving with regulatory challenges, but the RBI's proactive oversight of NBFCs sets it ahead of the curve, with more...

Pranav Bhavsar

Bajaj Finance (BAF): A Sustained Growth Powerhouse

BAF reported Q3FY24 PAT slightly below expectation due to adverse regulatory impact and slightly elevated credit costs. However these headwinds are...

Ankit Agrawal, CFA

Bajaj Finance Ltd. - Calibrated Growth Approach to Maximize Return Ratios, Maintain BUY

BAF added 3.85 Mn customers (+24/8% YoY/QoQ) during the qtr. vs 3.1/3.6 Mn customer YoY/QoQ, taking the total customer base to 80.4 Mn customers...

Axis Direct

Bajaj Finance - Standing the Test of Time – Planning, Execution and Resilience

ICICI Securities research report onBajaj Finance Bajaj Finance (Bajaj) is the only NBFC in India that prioritises customer ‘ownership’ over mere...

ICICI Securities Limited

[#20] Namaste India 🙏 | Bajaj Finance's Catch Up

​Text-only weekly returning with improvements, Stocks discussed include Bajaj Finance, SBI Cards, Honasa Consumer, and Delta Corp.

Pranav Bhavsar

Trouble in Paradise | India Credit Landscape & Wrath of the Regulator

​India's credit landscape is evolving with regulatory challenges, but the RBI's proactive oversight of NBFCs sets it ahead of the curve, with more...

Pranav Bhavsar

Bajaj Finance (BAF): A Sustained Growth Powerhouse

BAF reported Q3FY24 PAT slightly below expectation due to adverse regulatory impact and slightly elevated credit costs. However these headwinds are...

Ankit Agrawal, CFA

Bajaj Finance Ltd. - Calibrated Growth Approach to Maximize Return Ratios, Maintain BUY

BAF added 3.85 Mn customers (+24/8% YoY/QoQ) during the qtr. vs 3.1/3.6 Mn customer YoY/QoQ, taking the total customer base to 80.4 Mn customers...

Axis Direct

Text-only weekly returning with improvements, Stocks discussed include Bajaj Finance, SBI Cards, Honasa Consumer, and Delta Corp.

India's credit landscape is evolving with regulatory challenges, but the RBI's proactive oversight of NBFCs sets it ahead of the curve, with more...