KR Choksey's research report on Bajaj Finance
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. Pre-Provision Operating Profit (PPOP) stood at INR 64,121 Mn, a growth of 25.3% YoY (+4.4% QoQ) in Q4FY24. PPOP was 0.8% below our estimates. Profit after tax for Q4FY24 increased by 21.1% YoY (+5.1% QoQ) to INR 38,245 Mn. Net profit met our expectations. The Board of Directors has recommended a dividend of INR 36 per equity share for FY24. We have lowered our PAT estimates for FY25E/ FY26E by 4.5%/ 2.4% considering the lower business growth and have increased our credit costs to 1.75% in line with the management guidance for FY25E.
Outlook
We assign a P/ABV multiple of 4.5x on FY26E adj. book value of INR 1,778.0 to arrive at a T.P. of INR 8,000 per share. We maintain our “BUY” rating on BAF shares.
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