Bajaj Finance Q1FY24 Update: Loan book up 34%, AUM up 32% to ₹2.7 lakh crore; check details
Bajaj Finance’s loan book grew 34 per cent to 9.9 MM in the April-June quarter of the current fiscal, compared to 7.2 MM in the corresponding period last year. The leading NBFC announced its business update for the first quarter of fiscal 2023-24, noting that its customer franchise stood at 72.98 MM as of June 30, 2023, compared to 60.30 MM in the year-ago period.
The company recorded highest ever quarterly increase in its customer franchise of 3.84 MM in Q1 FY24, said Bajaj Finance in a regulatory filing to the stock exchanges on July 3. The assets under management (AUM) grew by 32 per cent to approximately ₹270,050 crore in Q1FY24, compared to ₹204,018 crore in Q1FY23. The company recorded highest ever quarterly increase in its AUM of approximately ₹22,700 crore in Q1FY24.
Also Read: Bajaj Finance target price raised by Jefferies, 18% upside expected led by strong fundamentals
Bajaj Finance’s consolidated net liquidity surplus stood at approximately ₹12,700 crore as of June 30, 2023. In addition, deposits book stood at approximately ₹49,900 crore in Q1FY24, compared to ₹34,102 crore in the year-ago period, registering an annual growth of 46 per cent, according to the exchange filing.
Last month, Jefferies raised its target price on Bajaj Finance citing its strong loan book growth, robust new customer acquisition and stable margins and asset quality. The NBFC that manages around half of consumer loans in India in volume terms and significant shares in volume for the purchase of electronic items and iPhones is set to benefit from consumer acquisition and stable asset quality driving margin growth.
The global brokerage house maintains a ‘Buy’ rating on the stock and increased the target price to ₹8,310 per share from 7,280 earlier, implying an upside of around 18 per cent from the current market price.
It sees the company delivering a healthy 27 per cent compound annual growth rate (CAGR) in loans, which, it believes, will support 26 per cent CAGR in earnings over FY23-26 and ROE of 25 per cent, said the brokerage firm.
“We raise earnings a tad bit to factor the fall in funding costs/ improved NIMs (net interest margins) in FY25-26,” Jefferies said in a note.
On July 3, shares of Bajaj Finance settled 2.46 per cent higher at ₹7,335.35 apiece on the BSE.
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Updated: 03 Jul 2023, 07:37 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.