Bajaj Finance Shares Dip Despite Stellar Q4 Results

[{"selector":"#anim-daf539e4-8041-4331-b640-65da1873e5e2 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(13.235410028478029%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-d5eb7dcd-77e7-4028-bdbf-31050cb6a3ed","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Bajaj Finance reported strong Q4 and FY24 results with 22.6% YoY rise in EPS and 30% increase in net profit for FY24.

[{"selector":"#anim-a80642ba-9f03-46c4-a71f-3d9923843066 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(33.54687489430725%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The company upgraded its guidance, now expecting 27-29% AUM growth in FY25 and 75 million customers by FY28.

[{"selector":"#anim-a1606888-7fa9-4156-a7c1-4a9a2ec9d58e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(34.179687404002955%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] While net interest income grew robustly, fee income remained muted, impacting profitability metrics like RoA and RoE.

[{"selector":"#anim-57aace1a-93f5-4b73-8d0b-716d35e981ee [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(21.874999829338595%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Bajaj Finance trades at a premium valuation of 30x forward P/E, much higher than historical averages.

[{"selector":"#anim-6c87d334-8cbd-490c-9a5e-c0db249c9d6e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(50.920679920789446%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The stock's low earnings yield of 3.4% is lower than FY25 bond yields, reducing institutional investor appeal.

[{"selector":"#anim-dcbf2b60-7a28-4412-888d-9a7c79ec53b8 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(37.3873453499939%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] With a market cap of Rs 4.29 lakh crore, Bajaj Finance is firmly the second largest NBFC after the leader. Learn more