Bajaj Finance Q1 Updates: Assets Under Management Up 25%

Bajaj Finance Ltd.'s assets under management rose 25% to Rs 4.41 lakh crore in the quarter ended June, according to a provisional quarterly business updates filed with stock exchanges on Thursday.

The non-banking financial service provider's loan book grew 23% year-on-year to 13.49 million in the first quarter. The company’s deposits book came at Rs 72,100 crore, a growth of 15% year-on-year.

Bajaj Finance in June rewarded its shareholders with a massive windfall, turning 10 shares into 100, as the company rolls out a combination of a stock split and bonus issue. The Bajaj Group’s non-banking financial company arm announced a 1:2 stock split and a 4:1 bonus issue.

This means the shareholders received four extra shares for each share they held. On the other hand, after the stock split, each share was divided into two, doubling the number of shares held by investors.

Bajaj Finance reported a 16% increase in its consolidated net profit for the March quarter, falling short of analysts' expectations. The non-banking financial company recorded a net profit of Rs 3,940 crore during the period.

Meanwhile, the net interest income for the March quarter rose by 21% to Rs 8,910 crore, compared to Rs 7,340 crore in the same quarter last year.

The business update was shared after market hours. Bajaj Finance shares settled 1.14% lower at Rs 912.50 apiece on the NSE, compared to a 0.19% decline in the benchmark Nifty 50.

The shares have risen 25.71% over the past 12 months and 33.74% year-to-date.

Out of 39 analysts tracking the stock, 22 have a 'buy' rating, 12 suggest a 'hold,' and five recommend a 'sell.' The average of 12-month analysts' price target of Rs 1,112.64 implies a potential upside of 22.2% from its previous closing.