Bajaj Finance Stocks Outlook: Shares of NBFC company Bajaj Finance are seeing a sharp rise after the quarterly results. Today, Bajaj Finance shares have risen nearly 3 per cent to reach the price of Rs 5038. Earlier on Tuesday, it had closed at Rs 4873. In fact, in the March quarter, Bajaj Finance has produced better results. On a year-on-year basis, the company’s profit in the March quarter increased by 42 percent to Rs 1347 crore. The company’s profit has increased in the fourth quarter due to the decrease in loan loss provision. After the results, the brokerage house also has a positive opinion about the stock, due to which the sentiment of investors has improved with respect to the stock.
Q4FY21: Profit up by 42%
Bajaj Finance’s profit grew 42 per cent year-on-year to Rs 1347 crore in the March quarter. The company’s profit in the same quarter a year ago was Rs 948.1 crore. Net interest income of the company decreased marginally in the March quarter and stood at Rs 4659 crore. Net interest income was Rs 4684 crore in the year-ago quarter. The board of Bajaj Finance has announced a dividend of Rs 10 per share for the financial year 2021 on a face value of Rs 2 a share.
Spending on loan loss and provisioning reduced
In the fourth quarter of fiscal year 2021, the expenditure on loan loss and provisioning was Rs 1231 crore, which supported the profit. A year ago this expenditure of the company was Rs 1954 crore in the same quarter. Whereas in the December 2020 quarter it was Rs 1352 crores.
Asset quality improved
The company’s gross NPA declined to 1.79 per cent in the March quarter, from 2.86 per cent a quarter earlier. During this period, the NPA of the company came down to 0.75 percent, which was 1.22 percent in the same quarter a year ago. Bajaj Finance has written off a loan loan of Rs 1530 crore linked to Covid-19 in the March quarter. The company has made macro provisioning of Rs 840 crore till the March 2021 quarter.
Share moves in 10 years
If the performance of non-banking financial company Bajaj Finance is seen in the last few years, then it has made investors rich. In the last 10 years itself, the share of Bajaj Finance increased from Rs 69 to Rs 5038. That is, it has directly increased the money of investors 73 times in 10 years. Talking about the percentage, the stock has increased by about 7193 percent during 10 years. Investors’ confidence in it remained due to the company’s asset quality and improved profits.
1 crore made of 1.4 lakhs in 10 years
Talking about returns, if in the last 10 years someone would have waited by investing 1.4 lakh rupees in the shares of Bajaj Finance, then today his amount would have increased to about 1.02 crore rupees. In terms of giving returns by big companies in the market, it is included in the leading companies. In the broad market, Bajaj Finance is among the top stocks in terms of giving returns in 10 years.
What is the opinion of the brokerage house
Brokerage house Motilal Oswal has set a target of Rs 5865, while recommending to buy the stock. Tuesday’s closing price of Rs 4873 can give a further 20 per cent return in this.
At the same time, brokerage house Morgan Stanley has given an overweight rating on Bajaj Finance and has set a target of Rs 6000. According to the brokerage, the company has done well on the revenue and asset quality front. In terms of current price, it can get 23 percent return.
(Note- We have given advice here based on the company’s quarterly results and brokerage house report. Considering the risk of the market, take the opinion of the first expert on the investment.)
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