Bajaj Finance Ltd. share price target

Men to be separated from boys: The NBFC segment is undergoing a significant shift in market approach. Courtesy recent events such as defaults (and subsequent bankruptcy in several cases) of the debt paper of several toprated corporates, we find that risk tolerance and appetite have been tempered across money markets. We believe this may lead to a possible shift in market approach, giving more...

Strong Consumer Finance (CF) performance, Robust AUM CAGR to sustain, Stellar Q3 despite ALM overhang on NBFCs

ICICI Securities Ltd | Retail Equity Research Consolidated AUM including housing saw growth of 41% YoY to | 109930 crore, higher than our estimate. It was largely led by consumer segment growing 42% YoY, 13% QoQ to | 43826 crore. Also, rural segment on small base surged 73% YoY while housing subsidiary credit increased 31% QoQ to | 14040 crore. Standalone Bajaj Finance AUM grew reasonably at 26% YoY to | 96248 crore Headline asset quality saw marginal deterioration QoQ but was...

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...