Bajaj Finance plunges ~8% on moderate loan growth in Q3FY23

5 Jan 2023 , 12:43 PM

Bajaj Finance’s shares fell up to 8.2% in value on Thursday after investors dumped the stock following a slowdown in loan growth in the December quarter or FY23.

According to Bajaj Finance’s quarterly business update, AUM (assets under management) growth has moderated to 27% year on year and 6% quarter on quarter (QoQ) from 31%/7% in Q2. New loan booking growth was also slower, at 5% year on year.

CLSA, a global brokerage, maintains a sell rating on the stock, citing the lender’s slow loan growth despite the holiday season. Despite underperformance, the stock is still ‘unjustifiably expensive,’ according to the company.

In its third-quarter results, Jefferies stated that it will monitor whether the slowing growth is due to shorter-term securities lending or retail/SME loans. Softer growth may weigh on the stock in the short term, it said.

At around 12.28 PM, Bajaj Finance was trading 7.28% lower at Rs6,092.40 per piece, against the previous close of Rs6,571 on NSE. The counter touched an intraday high and low of Rs6,490 and Rs6,025.05 respectively.

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