Bajaj Finance expects its assets under management to increase by 26% to 28% in the current fiscal year, which began on April 1, 2024. This is a slightly lower growth rate compared to the 34% growth it achieved in the previous year.
Shares of Bajaj Finance Ltd witnessed a sharp decline in Friday’s trade due to concerns over profit growth. The stock fell 7.78% to hit a day low of Rs 6,728 from its previous close of Rs 7,293.90. Stay tuned for more updates.
Assets Under Management Forecast:**Expecting robust growth in the fiscal year starting April 1, 2024. Anticipated growth of 26-28%, down from the exceptional 34% in the previous year.
Net Interest Margin Projection: NBFC predicts a slight decline in net interest margin of 30-40 basis points over the next two quarters.Stay tuned for more updates on NBFC’s financial performance!
Bajaj Finance reported a 21% increase in profit for the fourth quarter of fiscal year 2024. However, the company expressed caution about its profit growth for fiscal year 2025, suggesting that it may be more weighted towards the latter part of the year.
This cautious outlook had a negative impact on the shares of its holding company, Bajaj Finserv Ltd, causing a 4% drop in its share price.
According to brokerage firm Emkay, despite challenges such as the Reserve Bank of India’s restrictions on EMI and e-commerce cards affecting Bajaj Finance’s pre-tax profit by approximately 4%, the company delivered strong financial results in Q4 FY24.
Emkay remains positive on Bajaj Finance’s long-term strategy and has made minor adjustments to its estimates for FY25-FY27 based on the latest developments and management guidance. Emkay continues to recommend a ‘Buy’ rating on the stock, maintaining its target price of Rs 9,000 per share for March 2025.
Religare Broking reported that the NBFC witnessed robust growth in Asset Under Management (AUM), driven by the secured lending segment.
However, the company experienced a decrease in margins, primarily due to a rise in the cost of funds. Looking ahead, the management anticipates further margin contraction as they focus more on secured lending.
They also expect that credit quality will remain stable once RBI lifts restrictions on credit cards. In financial terms, Religare predicts that key financial metrics like Net Interest Income (NII), Pre-Provision Operating Profit (PPOP), and Profit After Tax (PAT) will grow steadily over the next few years. They maintain a positive outlook on Bajaj Finance, suggesting to buy the stock with a target price of Rs 8,861.