Bajaj Finance Shares Dip Despite Stellar Q4 Results

By - Vishal Jadaun

Bajaj Finance reported strong Q4 and FY24 results with 22.6% YoY rise in EPS and 30% increase in net profit for FY24.

The company upgraded its guidance, now expecting 27-29% AUM growth in FY25 and 75 million customers by FY28.

While net interest income grew robustly, fee income remained muted, impacting profitability metrics like RoA and RoE.

Bajaj Finance trades at a premium valuation of 30x forward P/E, much higher than historical averages.

The stock's low earnings yield of 3.4% is lower than FY25 bond yields, reducing institutional investor appeal.

With a market cap of Rs 4.29 lakh crore, Bajaj Finance is firmly the second largest NBFC after the leader.