Bajaj Finance Ltd. Brokerage/Research Reports, analyst Research Reports (2024)

Broker Report

Early relief – RBI removes restrictions on Ecom/EMI Card

Emkay

BAF has announced that on 2-May-24 the RBI has communicated to the
company about removal of restrictions by the Regulator on BAF sanctioning and
disbursing new loans under its ‘eCOM’ and ‘Insta EMI Card’ segments
(restrictions put on 15-Nov-23) and suspension of issuance of EMI Cards to new
customers (on 17-Nov-23).

Broker Report

Focus on newer and secured segment; NIMs will continue to see pressure

KRChoksey

Net Interest Income (NII) for Q4FY24 increased by 28.1% YoY (+4.7% QoQ) to INR 92,931 Mn, primarily led by the robust growth in AUM. The NII was in-line with our estimates.

Broker Report

First Light | Maruti Suzuki, Hindustan Unilever, Bajaj Finance, SBI Life, Supreme Industries, Dalmia Bharat, UTI …

BOB Capital Markets Ltd.

MSIL: Steady performance, but steep valuations; downgrade to HOLD. HUVR: Subdued performance; expect gradual recovery. BAF: Obstacles for a powerful player on a protracted journey. SBILIFE: Expect market dominance to continue. SI: In-line Q4FY24; pipe volume guided to grow at healthy rate in FY25. DALBHARA: Disappointments all over; but paving the way for growth. UTIAM: Core profit in line; maintain HOLD. GLS: Weak quarter; maintain HOLD

Broker Report

AUM growth to remain robust at 26-28% in FY25E, but NIM compression to keep earnings muted …

ICICI Securities Limited

Bajaj Finance’s (Bajaj) Q4FY24 financial performance was mixed as AUM growth, new customer acquisition, asset quality
and operating efficiencies continued to trend as envisaged; continued stress in rural B2C and 21bps QoQ NIM contraction were dampeners.

Broker Report

On right track to achieve Long Range Strategy goals

Emkay

BAF reported a good set of numbers in Q4FY24, against the backdrop of RBI’s
embargo on EMI and Ecom cards which affected PBT by ~4%, largely meeting
Consensus estimates. Management gave guidance for FY25 AUM growth of ~26-
28% and RoA of ~4.6-4.8% of AAUM, with profitability improving in the second
half as the first half will see some moderation in NIM on account of elevated
borrowing cost.

Broker Report

Bajaj Finance Limited

SMC online

Broker Report

Result Update:Bajaj Finance

Axis Direct

We maintain our BUY recommendation on the stock.

Broker Report

Staring at a weaker year ahead; downgrade to Neutral

Motilal Oswal

Bajaj Finance (BAF)’s 4QFY24 reported PAT grew ~21% YoY to
~INR38.2b (in line), while FY24 PAT rose ~26% YoY to INR144.5b.

Broker Report

Execution machine robust as ever; ST challenges in the price

Emkay

We initiate coverage on Bajaj Finance (BAF) with a BUY recommendation and
Mar-25E TP of Rs9,000/sh (~23.4% upside), implying FY26E consolidated P/B
of 5.1x.

Broker Report

Mixed performance; Stress on B2C takes a minor toll on the asset quality

KRChoksey

As of December 31, 2023, AUM reported a 34.7% YoY/ 7.1% QoQ growth at INR 31,09,680 Mn, led by the strong growth in new customer addition during the quarter. The customer franchise stood at 80.4 Mn as of December 31, 2023, compared to 66.1 Mn as of December 31, 2022, a growth of 21.7%.

Broker Report

First Light | Consumer Goods, Tata Steel, Bajaj Finance, Dalmia Bharat

BOB Capital Markets Ltd.

Consumer Goods: What production and price data of consumer goods say? TATA: UK transition and TSK2 to bolster growth; maintain BUY. BAF: Mixed quarter; maintain BUY. DALBHARA: Soft prices constrain growth

Broker Report

Elevated credit costs from B2C businesses; NIM contracts QoQ

Motilal Oswal

Broker Report

Bajaj Finance Limited

SMC online

Broker Report

Result Update:Bajaj Finance

Axis Direct

We maintain our BUY recommendation on the stock.

Broker Report

Bajaj Finance (BUY): Impact of RBI strictures likely to be marginal

BOB Capital Markets Ltd.

RBI has instructed BAF to stop disbursing loans under two digital products, the Insta EMI Card' and eCOM

Broker Report

Company Update:Bajaj Finance

Axis Direct

However, BAF has stated that the financial impact of the regulator's action would not be material. We believe the stock to remain under pressure in the near term.

Broker Report

Strong performance despite NIM compression; Diversification to support growth

KRChoksey

As of September 30, 2023, AUM reported a 32.9% YoY/ 7.5% QoQ growth at INR 29,02,640 Mn, led by a healthy increase in customer franchise on account of improving penetration in new geographies. The Company has added an AUM of INR 428.85 Bn in H1FY24.

Broker Report

Earnings in line; reported NIM contracts 15bp QoQ

Motilal Oswal

Broker Report

Result Update:Bajaj Finance

Axis Direct

We maintain our BUY recommendation on the stock.

Broker Report

Result Update - Bajaj Finance

SMC online