Bajaj Finance Ltd. share price target

In a conference call, the management of Bajaj Finance has said business growth and collection remained healthy in January-February 2020. With disbursements coming to a standstill, post the lockdown in March 2020, growth momentum has been impacted. Key takeaways of conference call: The management has provided a broad estimate of business based on...

We present key takeaways from our meeting with the Bajaj Finance (BAF) management.

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Asset under management (AUM) grew 35.0% YoY to Rs. 145,092cr, largely driven by Mortgages business (+43.9% YoY; ~30% of total AUM). Loan loss provision stood at Rs. 831cr (+85.6% YoY), while adjusted loan losses and provision rose 65% YoY to 746cr, adjusted for accelerated provision of Rs. 85cr in one of loan against securities. Profit before tax grew 36.9% YoY, while Net Profit surged 61.0% YoY largely attributable to lower tax rate. Existing customers contributed to 68% of new loans booked vs. 70% in...

The loan book of Bajaj Finance Limited (BFL) can be broadly diversified into four categories viz. consumer finance, SME finance, commercial lending and rural finance. AUM grew at a CAGR of 38% between FY15 to FY19 driven by growth across all segments together with strong growth in mortgage loans (through subsidiary Bajaj...

Bajaj Finance Profit Beats Estimates, Despite Higher Provisions Bajaj Finance has continued to post robust 52% growth in the net profit to Rs 1614.11 for the quarter ended December 2019 (Q3FY2020). Income from operations on a consolidated basis increased 39% to Rs 6104.84 crore, while other income jumped 52% to Rs 921.09 crore. Total income moved up 41% to Rs 7025.93 crore in the quarter ended December 2019. Interest...

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Diversity has given BFL an edge in terms of AUM growth (>38% CAGR to | 60194 crore in FY11-19) and asset quality with steady 1.2-1.6% GNPA in the past three years). PAT rose at 40% CAGR in FY11-18 to | 2646 crore (old GAAP). We introduce FY22 estimates. With provisions on rising NPA and tax adjustment, in FY20-22E, we expect NII, PAT traction to remain strong at 27%, 30% CAGR, respectively, in FY20-22E. Operating efficiency is enabling...