Moneycontrol
Last Updated : Oct 26, 2018 03:18 PM IST | Source: Moneycontrol.com

3 Point Analysis | Should you buy Bajaj Finance despite liquidity crunch in NBFCs?

Sakshi Batra does a 3 point analysis on whether investors look at the stock incrementally at the time when NBFCs are staring at multiple headwinds.

Moneycontrol News @moneycontrolcom

Liquidity crunch in NBFCs has caused panic selling in stocks across the sector. Even sound fundamental companies like Bajaj Finance have taken a huge beating. The stock has corrected almost 24 percent from its 52-week high price.

But, despite deteriorating macros, the company has posted strong results for the second quarter. Bajaj Finance posted a net profit growth of 54 percent year-on-year (YoY) led by robust loan book growth and controlled expenses. Its loan assets increased to Rs 100,217 crore, clocking a growth of 38 percent YoY.

While there is a macro headwind in the form of tightened liquidity, rising interest rates and increasing competition that can compress margins, the micro business of Bajaj Finance continues to be very strong. Sakshi Batra does a 3 point analysis on whether investors look at the stock incrementally at a time when NBFCs are staring at multiple headwinds.
First Published on Oct 26, 2018 01:50 pm
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