Last updated: 07 Oct, 2021 | 01:45 pm
Bajaj Finance recently announced an update on its second quarter numbers. Bajaj Finance has been one of those companies that have given exceptional returns to investors over the years. In the last one year, the stock has delivered over 130% returns to investors.
Highlights of Q2 number updates from Bajaj Finance:
Customer Base - The company has gained 24 lakh customers in the second quarter of FY22. In Q1FY22, the company added 12 lakh customers. The total customer base of the company for the quarter ending September 30, 2021, stood at 5.28 crore. It has gone up by 19.7% YoY. A year ago, the company had 4.4 crore customers.
AUM - The company reported Asset Under Management (AUM) at Rs 166,900 crore as of 30 September 2021. On a YoY basis, it is a growth of 21.7%. Last year, the company reported Rs 137,090 crore AUM in the same period.
Deposit book - The deposit book grew 32.4% YoY to Rs 28,700 crore from Rs 21,669 crore in the last year.
Capital adequacy - Bajaj Finance has the best capital adequacy ratio among large NBFCs. The company reported a Capital-to-risk weighted assets ratio (CRAR) of 27.7%.
Consolidated liquidity surplus - The company said its liquidity position remained strong in Q2FY22 and the consolidated liquidity surplus stood at approximately Rs 16,500 crore.
The new loans booked were up 37% to 6.3 million as against 3.6 million YoY. The numbers are back to pre-Covid levels and it is a positive sign for the company and investors. The numbers suggest that there is normalization in the various business segments of the company.
Credit Suisse: Neutral
The brokerage expects Bajaj Finance to meet its credit cost guidance of 2.5 percent. The financier may witness pricing pressure in mortgages but may hold on to pricing in other segments. According to Credit Suisse, Bajaj Finance will be able to meet its credit cost guidance of 2.5%. The global brokerage has retained a ‘Neutral’ rating on the shares with a target price of Rs 7,500.
Motilal Oswal noted that the Q2 FY22 business update suggests a rapid normalisation across business segments. Further, this trajectory would continue in the second half of the current financial year as well, with RoA/RoE likely to rebound to 3.8%/18.2%. Bajaj Finance shares closed Thursday’s session at Rs 7,758.