Q1FY24 Preview: Bajaj Finance: NII seen at Rs. 66,409 million, PAT at Rs. 33,858 million

24 Jul 2023 , 06:02 PM

Result date: 26^th July, 2023

Recommendation: Add 

Target price: Rs. 6,550

(Source: IIFL Research)

Bajaj Finance’s loan book grew 32% over the year-ago quarter. The company’s Net Interest Income (NII) could grow 25.9% relative to the year-ago quarter.

As cost of funds are likely to inch up a little, Bajaj Finance’s Net Interest Margin (NIM) could remain flat. This, along with high cost-to-average AUM ratio could have some bearing on overall profitability in the quarter.

Bajaj Finance’s asset quality is expected to be stable among declining credit costs.

The company’s Profit After Tax (PAT) could surge 30.55% over the year-ago quarter.

Important management insights to watch out for:

• Demand trends across key segments
• Outlook on margins, asset quality

Rs. Million	June 2023 estimates	YoY change	QoQ change
NII	66,409	25.90%	6.20%
PPOP	54,610	28.30%	6.68%
Profit After Tax	33,858	30.55%	7.16%

Source: Brokerage Reports