Apart from consumer finance, the company also has substantial business penetration in SME, commercial and rural lending.
Bajaj Finance is one of the largest players in the rapidly growing consumer finance segment in India and a pioneer in introducing interest-free EMI finance options in more than 50 categories, ranging from consumer durables to lifestyle products to groceries.
Apart from consumer finance, the company also has substantial business penetration in SME, commercial and rural lending. With housing as subsidiary, mortgages are also gaining traction.
The company offers wide range of products to its customers through multiple segments which includes products such as consumer durable loans, digital product loans, lifestyle product loans, 2-wheeler & 3-wheeler loans, salaried personal loans, e-commerce consumer finance, working capital loans, loan to professionals, commercial loans, gold loans, home loans etc.
In its latest quarterly results, Bajaj Finance Ltd has reported 63 percent growth in PAT to Rs. 1506cr led by 38 percent loan growth and NIM expansion of ~90 bps to ~12.1 percent YoY.
Asset quality remains under control with GNPAs and NNPAs coming at 1.61 percent and 0.65 percent respectively.
A well-diversified credit portfolio, focus on cross selling, customer acquisition, systematic expansion in delivery channels both physical and virtual, and distribution of products through these channels are likely to sustain robust growth in AUM going forward.
We reiterate our coverage on Bajaj Finance with a buy rating and target price of Rs 4,818 per shareDisclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.