NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Bajaj Finance Ltd.'s Q4 FY24 financial performance was mixed as assets under management growth, new customer acquisition, asset quality and operating efficiencies continued to trend as envisaged; continued stress in rural B2C and 21 bps QoQ net interest margin contraction were dampeners.
While management maintained its AUM growth guidance at 26-28% in FY25E, likely NIM compression in H1 FY25E and revised credit cost to 1.85% versus 1.7% pre-Covid is likely to keep earnings under pressure during H1 FY25E.
However, management sounded confident about sustaining return on asset/return on equity at ~4.7%/~20% in FY25E.
Bajaj's resilient business model, built on strong customer acquisition engines and cross-sell, augurs well for the business to maintain leadership in the NBFC space.
We retain Buy; target price unchanged at Rs 8,500, valuing the standalone business at five times FY26E book value per share and Rs 830 towards housing subs.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
