Bajaj Finance Ltd. share price target

29 January 2019 Bajaj Finance (BAF) reported 3QFY19 54% YoY, despite tough liquidity situation and higher-than- expected credit cost of INR4.5b (of which INR2.85b was a write-off). smartly by 40%/37% on a YoY basis. The share of Bajaj 2Ws financed by BAF increased from a run-rate of 35% to 52% in 3Q. As opex (+31% YoY) grew slower than total income (+46% YoY), C/I ratio declined 400bp YoY to 35%. Also, operating profit grew by 56% YoY to INR20.9b. Asset quality inched up marginally to 1.55% GNPA (+5bp QOQ). Given that BAF did a write-off of INR2.85b, PCR declined 400bp QoQ to 60%. basis, raised INR193b/INR63b of funds from the money markets/banks during the quarter. As a result, reported cost of funds remained largely similar at 8.

We are optimistic on Bajaj Finance's (BAF) outlook, given its traction in multiple products, new initiatives in various business segments (on both the asset and liability sides) and able top management. We are particularly enthused about the new emerging vectors of profitability: (a)asset-light model, (b) operating efficiency, (c) granular retail portfolio, (d) improving risk management parameters led by technology and (e) capital efficiency.

consolidated net profit to Rs 923.47 crore under Ind-AS accounting for the quarter ended September 2018 (Q2FY2019). The company has maintained strong loan growth, which franchise surged 31% to 30.05 million end September 2018 from 22.99 million end September...

increasing by 52.7% y-o-y. Net profit for the quarter grew by 55% y-o-y to Rs. 920 crore. BFL has consistently maintained its strong credit rating, which helps it to maintain attractive CoF, thereby maintaining healthy NIM even in an adverse rate environment. The company has been diversifying its borrowing mix to bolster its margins and we believe deposit accretion will...

ICICI Securities Ltd | Retail Equity Research PAT grew at a strong pace of 54% YoY to | 924 crore. This was led by NII increase of 41% YoY to | 2689 crore & lower YoY increase in...

Asset quality lets down but otherwise another strong quarter with an AUM growth of 38% and benefits of operation leverage translating into earnings growth of 66% YoY. The negative was weakening asset quality, driven by slippages outpacing recoveries by 10bps QoQ, to 1.49% and reduced provisions cover. We remain confident on its ability to continue the growth momentum and increase market share as peers tighten their belts, ability to sustain NIMs and maintain customer acquisition and asset growth. Despite the increased volatility and regulatory overhang, it is well...

Stellar quarter; well positioned on ALM and liquidity Bajaj Finance (BAF) reported 2QFY19 net profit of INR 9.24bn (up 55% YoY ) as per IndAS. As per IGAAP, net profit was up 83% YoY at INR 10.2bn. Key highlights: i) AUM growth remained strong at 38% YoY driven by all the segments. As per company, consumer demand remained strong, however given the current environment, company would be slightly cautious for quarter or so in the lumpy exposure in SME, LAS and commercial lending. ii) Customer acquisition remained healthy, with the company acquiring 1.8 million new customers (up 34% YoY) in 2QFY19. iii) Margins increased 33bps YoY to 11.1% on a 47bps...

After delivering consolidated AUM growth of ~37.9% yoy (incl. Housing Finance) in Q2FY19, Bajaj Finance's (BAF) management remains confident of robust growth in the coming quarters, though moderation expected in LAP and Developer Finance segment....

Bajaj Finance has continued to record strong growth in profitability with 81% surge in the consolidated net profit to Rs 836 crore under Ind-AS accounting for the quarter ended June 2018 (Q1FY2019), against 69% growth to Rs 1018 crore under IGAAP. The company has maintained strong loan growth at 35% to Rs 93314 crore end June 2018, while the loan growth was even higher at 39% adjusted for short term IPO financing book of Rs 2021 crore in AUM of June 2017. Customer franchise surged 30% to 28.28 million end June 2018 from 21.69 million end June 2017. The company has acquired 2.07 million new customers...

20 July 2018 Bajaj Finance (BAF) reported PAT of INR8.36b under Ind-AS accounting (INR10.2b quarter was marked by continued new client addition (+33% YoY), improving spreads YoY and stable asset quality. (b) On a comparative basis, FY18 PAT was 7% lower under Ind-AS v/s I-GAAP, again largely due to amortization of fee and subvention income. Since a higher share of fee income/subvention income related businesses is written in 1Q and 3Q of the year, Ind-AS impact due to amortization is likely to be higher in these quarters. In FY18, the amortization-related impact for the full year (INR1.97b) was largely equal to that in 1Q (INR1.86b), and we expect a similar trend in FY19 too. b) Standard assets provisioning on balance sheet improved to 90bp v/s 40bp earlier due to Ind-AS implementation and higher provisioning requirement in stage 2 loans (30-90dpd). c) Total provisions on the balance sheet stand at 1.