Buy Bajaj Finance; target of Rs 8861: Religare Retail Research

Religare Retail Research report on Bajaj Finance

Bajaj Finance Q4FY24 net interest income increased by 4.7% QoQ/28.1% YoY to Rs 8,013cr despite declining margins. The growth in topline was mainly the interest income (5.6% QoQ/34.4% YoY) and fees and commission income (2.6% QoQ/15.3% YoY). Operating expenses increased by 4.6% QoQ/24.3% YoY, thus, pre-provision operating profit grew by 4.4% QoQ/25.4% YoY to Rs 6,412cr. PAT was reported with a growth of 5.1% QoQ/21.1% YoY to Rs 3,825cr as the NBFC company increased its provisions by 4.9% QoQ/52.4% YoY.

Outlook

Bajaj Finance Q4FY24 net interest income increased by 4.7% QoQ/28.1% YoY to Rs 8,013cr despite declining margins. The growth in topline was mainly the interest income (5.6% QoQ/34.4% YoY) and fees and commission income (2.6% QoQ/15.3% YoY). Operating expenses increased by 4.6% QoQ/24.3% YoY, thus, pre-provision operating profit grew by 4.4% QoQ/25.4% YoY to Rs 6,412cr. PAT was reported with a growth of 5.1% QoQ/21.1% YoY to Rs 3,825cr as the NBFC company increased its provisions by 4.9% QoQ/52.4% YoY.