Bajaj Finance reported lower-than-expected earnings led by higher provisions and lower NII.
- GNPA, NNPA ratio negatively surprised rising 117 bps, 76 bps to 2.96%, 1.46%, respectively, led by auto finance GNPA surge
- Operating costs were lower but provisions surged to Rs. 1750 crore
- PAT was at Rs. 1002 crore, up 4% YoY and declined 25% QoQ
Key triggers for future price performance
- Expect 20%, 22% advances growth for FY22E, FY23E and PAT growth of 30%, 45%, respectively
- Expect asset quality to stabilise post unlock by Q4FY22
- RoE is seen returning to ~15% and RoA at >3%
- A leaner operating model and robust growth guidance
For details, click on the link below: Link to the report
Shares of Bajaj Finance Limited was last trading in BSE at Rs. 5937.9 as compared to the previous close of Rs. 6012.75. The total number of shares traded during the day was 50657 in over 7227 trades.
The stock hit an intraday high of Rs. 6028.8 and intraday low of 5868.45. The net turnover during the day was Rs. 302018233.