Bajaj Finance on Tuesday reported a 79.67% year on year (YoY) increase in its consolidated net profit. In the quarter ended 31 March 2022, it reported a consolidated net profit of ₹ 2,419.51 crores, as compared to ₹ 1,346.64 crores during the same period last year.
The company said that this was its highest ever consolidated profit. However, its shares plunged 6.15% on Wednesday’s intraday trades and are currently trading at ₹ 6,795 apiece.
The company’s net interest income increased by 30 per cent to Rs 6,068 crore from ₹ 4,659 crores YoY. It reported its highest ever profit after tax of ₹ 7,028 crores. It announced a dividend of ₹ 20 per share. The record date for the payment of this dividend is July 1, 2022.
On a consolidated basis, the total AUM of the company grew 29 per cent to ₹1.97 trillion as of 31 March as compared to ₹ 53,322 crores during the same period last year.
Here’s what brokerages have to say:
Sharekhan
The brokerage firm has maintained a buy rating on the shares of Bajaj Finance and has a target price of ₹ 9,097 apiece. This translates to an upside of 33.88%.
ICICI Direct
ICICI Direct has a buy call on the shares of Bajaj Finance with a target price of ₹ 9,500. The time period by which the share price can achieve this target as per the analyst is one year. This implies an upside of 39.81%
Motilal Oswal
The brokerage has maintained a buy rating on the shares of the company with a target price of ₹ 8350 apiece. This translates to an upside of 22.85%.
Kotak Securities
It has maintained a sell call on the with a fair value of ₹ 6500, up from 6350 earlier. This implies a downside of 4.34%. They say that the company has missed their expectations.
CLSA
Broking house CLSA has changed its rating to ‘sell’ on the stock and cut the target price to ₹ 6,000 per share since Bajaj Finance has missed its PAT estimates by 9%. This indicates a downside of 11.70%.
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