• Shares of Bajaj Finance ended with losses for the second consecutive trading session on Friday.
Bajaj Finance shares extended losses for the second straight session after posting a disappointing update in the December quarter (Q3). The stock fell below the ₹6,000 mark on Friday for the first time since July 2022, falling over 2% to ₹5,974 per share on the BSE in early deals. Extending its decline, the stock has gained over 9% in the last two sessions.
Shares of Bajaj Finance declined up to 8% on Thursday after reporting a marginal growth in new loans and assets under management (AUM) for the third quarter of the current financial year.
"Bajaj Finance reported sequential AUM growth of ~6% and annualized growth of 27%. This performance was slightly lower than the Street's expectations as 3QFY23 is generally a strong quarter due to festive demand. However, the highest number added new customers and also saw booking of new loans," brokerage Antique Stock Broking said in a note. Deposit growth remains strong, thus improving its lending profile by making it more retail and granular. Capital adequacy remains at healthy levels and liquidity position also remains strong."
Bajaj Finance
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5,982.40-117.45 (-1.93%)
Updated - 06 January 2023
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Antique analysts said new customer acquisition, although the highest for the quarter at 3.1 million, was slower than expected.
“Bajaj Finance's next phase of customer acquisition through digital mode is happening at a relatively slow pace compared to our expectations. Although the company is currently witnessing strong growth through its existing customers, we believe this may not continue for long and may see a slight deceleration in growth in the medium term. The stock has corrected over the past three months based on the concerns mentioned above and we believe it is currently overvalued until the company sees strong performance again," Antic said.
The assets under management (AUM) of the company grew by 27% YoY to approximately ₹230,850 crore by December 2022 as compared to ₹181,250 crore as of December 2021.
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