Bajaj Finance Q4 results; key things to watch out for


Bajaj Finance is likely to post another strong result for the quarter ended March 31 on Thursday. Brokerage firm Emkay Global Financial Services projected 42 per cent rise in adjusted profit after tax figures for the NBFC on 32 per cent and 36 per cent YoY growth in net sales and Ebitda, respectively.

“Bajaj Finance remains our top pick in the sector, with a superior growth profile, a favourable ALM maturity, and a diversified book,” Emkay said in a report.

ICICIdirect.com sees 53 per cent YoY rise in net profit for the quarter ended March 31. It also sees around 54 per cent and 66 per cent YoY jump in net interest income and pre-provisioning profit in Q4FY19.

Asset under management (AUM) is expected to increase 39 per cent YoY to Rs 1,16,509 crore led by rural, housing and consumer segment.

Market experts see no major negative surprise on the asset quality front for Bajaj Finance.

Another brokerage firm Sharekhan also sees over 50 per cent rise in net profit on 43.70 per cent rise in net interest income.

Shares of Bajaj Finance have outpaced the benchmark equity index Sensex on a year-to-date basis, reflecting the Street’s comfort on the company’s high growth trajectory. The scrip advanced 9 per cent YTD till May 14, while the 30-share index gained 3 per cent during the same period.

Ass assessment by Jefferies projected 37 per cent year-on-year rise in profit after tax and net interest income of Bajaj Finance in Q4.

Market participants should focus on the trend in disbursement growth, the incremental cost of funds and borrowing mix, asset quality trends, especially in LAP and 2W/3W businesses and traction in the cross-sell franchise in the upcoming quarterly numbers.

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Margins are expected to be largely stable at 11.6 per cent, according to Motilal Oswal Financial Services.





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