Sharekhan's research report on Bajaj Finance
BAF reported a mixed performance in Q1FY2025. Higher-than-expected NIM compression (down 25bps q-o-q) and elevated credit cost (1.9%, up 32bps q-o-q) led to lower earnings growth, partially offset by strong AUM growth and contained opex growth. Credit cost has been higher primarily due to muted collection efficiencies, and it may remain at current levels in Q2 also but should start to normalise from Q3.NIM is likely to bottom out in H1FY2025. Growth guidance remains intact, which is a key positive.
Outlook
We retain our BUY rating with a reduced PT of Rs. 8,300, with reducing P/B multiple. At the CMP, the stock trades at 4.9x/4.1x its FY2025E/FY2026E BV estimates.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
