- Bajaj Finance reported a net income of 42.5 billion rupees for the third quarter, a 17% year-over-year increase, surpassing estimates of 41.3 billion rupees.
- The company’s revenue climbed 27% year-over-year to 180.4 billion rupees, slightly above the projected 180.24 billion rupees.
- Gross non-performing assets rose slightly to 1.12% from 1.06% in the previous quarter.
- Provisions for loan losses increased by 7% quarter-over-quarter to 20.43 billion rupees, exceeding the estimate of 19.58 billion rupees.
- Operating profit saw a 27% year-over-year growth, reaching 78.1 billion rupees.
- Total costs surged by 33% year-over-year, amounting to 123 billion rupees.
- Finance costs rose by 31% year-over-year to 63.9 billion rupees, which was lower than the expected 64.83 billion rupees.
- Net interest income was 93.8 billion rupees, up 22% year-over-year, but slightly below the estimated 94.13 billion rupees.
- Assets under management grew by 28% year-over-year, reaching 3.98 trillion rupees, matching estimates.
- New loan bookings increased by 22%, up from 14% in the previous quarter.
- The capital adequacy ratio was slightly lower at 21.6%, compared to 21.7% quarter-over-quarter.
- Bajaj Finance shares rose by 2%, reaching 7,760 rupees, with 1.51 million shares traded.
- Analysts’ recommendations included 28 buys, 5 holds, and 4 sells.
“`
Bajaj Finance Ltd on Smartkarma
Analyst coverage on Bajaj Finance Ltd on Smartkarma is insightful and optimistic. Sudarshan Bhandari‘s report, “FINAI: Decoding Bajaj Finance’s AI-Powered Strategy for Financial Dominance,” highlights the company’s transition into a “FINAI” entity utilizing AI for growth, new customer acquisition, and risk management. Ankit Agrawal, CFA, in the report “Bajaj Finance: Mixed Q1, However Growth Trajectory Remains Intact,” acknowledges Bajaj Finance’s robust AUM growth despite challenges in profitability and credit costs. With Pranav Bhavsar‘s analysis on consumer finance lenders, including Bajaj Finance, it’s evident that the company is a key player in the consumer finance sector.
A look at Bajaj Finance Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Bajaj Finance Ltd, a financial services company with operations in India, shows a promising long-term outlook based on its Smartkarma Smart Scores. With strong scores in Growth and Momentum at 4, Bajaj Finance is positioned well for future expansion and market performance. Additionally, its Value and Dividend scores at 3 suggest a solid foundation in terms of both stock value and potential returns to investors.
However, challenges may lie ahead as indicated by a lower score in Resilience at 2. This could point to potential vulnerabilities in the face of economic uncertainties or market fluctuations. Despite this, Bajaj Finance’s overall positive scores in key areas bode well for its prospects in the long run, portraying a company with growth potential and momentum in the financial services sector.
### Summary: ###
### Bajaj Finance Limited is a financial services company that operates branches in India, which provide an assortment of financial services. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
