Bajaj Finance jumps 6% as Jefferies maintains 'Buy' post Q1 nos

Research house Jefferies has maintained buy rating with a target of Rs 3,600 per share

Shares of Bajaj Finance rose 6.5 percent intraday on July 26 after research house Jefferies maintained a buy rating on the stock on better June quarter numbers.


The company has reported June quarter consolidated net profit at Rs 1,195 crore, a jump of 43 percent against the consolidated profit of Rs 835.9 crore in the corresponding period of the last fiscal.

Net interest income during the quarter beat street estimates and grew 43 percent to Rs 3,695 crore compared to the year-ago.

The consolidated asset under management surged 41 percent YoY to Rs 1.29 lakh crore.

Research house Jefferies has maintained buy rating with a target of Rs 3,600 per share

Pre Provision Operating Profit (PPoP) is ahead of the estimates, but provision surprised negatively. Meanwhile, the asset quality is stable QoQ.

The firm feels that the company has flagged early signs of stress in digital product segments.

It stays positive as strong loan growth of the company and expects opex cost levers and stable asset quality should drive strong earnings and returns.

Morgan Stanley has maintained equal-weight call with a target at Rs 2,950 per share.

The consolidated PAT is 5 percent below the estimate of Rs 1,250 crore, however, PAT is lower due to higher provisions at 180 bps of average loans, said Morgan Stanley.

The revenue was up 43 percent YoY, which is 3 percent higher than the estimate and operating costs, it added.

At 1218 hrs Bajaj Finance was quoting at Rs 3,226.90, up to Rs 180.50, or 5.93 percent on the BSE.

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