Bajaj Finance share price today: After the results for the second quarter of FY24, the share price of Bajaj Finance has dropped by more than 2%. What should you do? This is what the top brokerage firms are saying.
Following the Q2FY24 results, Bajaj Finance’s share price fell by over 2%. Bajaj Finance reported a 27.7% annual growth rate in net profit for Q2FY24.
Bajaj Finance Share Price: After the company released its Q2FY24 scorecard a day after the results on Tuesday, October 18, Bajaj Finance’s share price on the BSE opened at ₹8,080.95 compared to the previous closing level of ₹8,091.35 and quickly dropped by 2.05% to ₹7,925. Around 9:25 AM, the stock was trading at ₹7,981.35 on the BSE.
In the past year, Bajaj Finance’s share price has underperformed the benchmark index, Sensex. The stock has only seen a 10% increase in the past year, while the Sensex has risen by almost 14%.
Bajaj Finance’s share price on the BSE reached its highest level of ₹8,190 this year on October 6, and the lowest level of ₹5,487.25 on March 20.
From its lowest point this year, Bajaj Finance’s share price is now up by approximately 47% as of October 17.
Bajaj Finance Q2 Results: After the market closed on Tuesday, October 17, Bajaj Finance reported a year-on-year (YoY) growth rate of 27.7% in consolidated net profit for Q2FY24, which was ₹3,550.80 crore in the same quarter last year compared to ₹2,780.65 crore.
According to the company, Non-Banking Financial Companies (NBFC) recorded a 26% YoY growth in Net Interest Income (NII) for the second quarter of FY24, on a consolidated basis, increasing from ₹7,002 crore to ₹8,845 crore in the financial year 24—exchange filings.
Under the company’s management, Assets Under Management (AUM) increased by 33% annually to ₹2.9 lakh crore, and interest income increased by 38% to ₹11,734 crore. The company added 3.58 million new customers in Q2FY24, bringing the total customer base to 77 million by the end of September.
Managing Director Rajiv Jain told analysts on Tuesday that during this period, Bajaj Finance had reduced business in urban and rural areas by 8-14% for customers who already had several small-ticket loans.
Most brokerage firms have maintained their previous views on Bajaj Finance after the Q2 results. However, some have adjusted their estimates for the NBFC firm.
Motilal Oswal Financial Services doubled down on its Buy call on the stock with a target price of ₹9,600, indicating a 19% potential increase. Motilal Oswal said that Bajaj Finance’s customer acquisition and new loan deployment paths remain robust, and the pace of digitisation, with digital interfaces like apps, web platforms, and full-stack payment offerings, will only strengthen. Brokerage firms have incorporated an announced equity capital growth of around ₹10,000 crore and expect AUM and PAT CAGR of approximately 29% and 28% during FY23-FY26.
“Bajaj Finance should be capable of meeting the NII CAGR of 28% in FY23-FY26 with operating leverage. Our EPS estimates remain largely unchanged, and we now present our estimates for FY26,” said Motilal Oswal.
Another brokerage firm, Nirmal Bang, has upgraded the stock to a ‘Buy’ and increased the target price to ₹9,520, indicating an 18% potential increase. Nirmal Bang expects strong AUM growth of 31% and 29% for FY24 and FY25, respectively, which will be inspired by consistent growth across all segments.
