Bajaj Finance reports strong asset growth, but loan bookings disappoint the Street
On a sequential basis, new loan bookings have seen a decline from 7.4 million in Q1FY23
Share price of Bajaj Finance opened slightly higher on October 6 and then slipped into the red even though the company posted a strong AUM (assets under management) growth of 31 per cent for the September quarter. The AUM increased to around Rs 2.18 lakh crore as against Rs 1.66 lakh crore as on 30 September 2021.
At 9:30 am, the stock was trading at Rs 7,376, down 1.5 per cent on the National Stock Exchange. This is the top index loser today. The stock has gained nearly 50 per cent from its June low of Rs 5,200.
In an exchange filing, the company reported that customer franchises now stand at 62.9 million compared to 52.8 million in the year-ago period. “In Q2FY23, customer franchise grew by 2.6 million. The new loans booked during the quarter stood at 6.8 million as compared to 6.3 million in Q2FY22,” it added.
On a sequential basis, new loan bookings have seen a decline from 7.4 million in Q1FY23. Global brokerage firm Macquarie has made an underperform call on the stock with a target of Rs 5,000. “AUM growth is ahead of estimates, but loan volume is flat against FY20 total volume. The loans booked are still below the estimate of 7 million.
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