Bajaj Finance share price hits all-time high amid fundraising plan through ECBs


Share price of Bajaj Finance rose 1.37% to Rs 4,785.15 compared to the previous close of Rs 4,720 on BSE

Bajaj Finance share price hit its all-time high today amid a rally in benchmark indices Sensex and Nifty on positive global cues. Share price of Bajaj Finance rose 1.37% to Rs 4,785.15 compared to the previous close of Rs 4,720 on BSE. The large cap stock opened higher at Rs 4,750. However, the stock pared some gains to close 0.61% or 29 points higher at Rs 4,749 on BSE.

According to a media report, the firm plans to raise $200 mln-$300 mln through external commercial borrowing by March 31.

The company has received fresh nod from the Reserve Bank of India to raise another $650 mn in the next six months,  the report quoted Managing Director Rajeev Jain as saying.

Market cap of Bajaj Finance stood at Rs 2.85 lakh crore on BSE. 0.33 lakh shares changed hands amounting to turnover of Rs 15.67 crore. The stock has gained 2.2% in last two days. During the last one year, the stock has risen 79% and gained 12.14% since the beginning of this year. 16 of 26 brokerages rate the stock “buy” or ‘outperform’, nine “hold” and one “underperform”, according to analysts’ recommendations tracked by Reuters.

On January 29, 2020, Bajaj Finance announced its Q3 earnings. Net profit of the non-banking finance company rose 52 per cent in Q3 compared with Rs 1,060 crore profit in the year-ago quarter. Total income rose 41 per cent to Rs 7,026 crore for in Q3 against Rs 4,992 crore in year ago period. Net interest income rose 42 per cent at Rs 4,537 crore in Q3 compared to Rs 3,206 crore in the corresponding period of previous fiscal.  Interest income rose 39 per cent to Rs 6,105 crore in last quarter from Rs 4,387 crore in Q3 of 2018-19.

Assets under management (AUMs) as on December 31, 2019, rose to Rs 1,45,092 crore, up 35 per cent from Rs 1,07,507 crore. New loans booked in terms of volume increased 13 per cent to 76.7 lakh from 67.7 lakh, it added.

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Gross non-performing assets (NPAs) and net NPAs as on December 31, 2019, stood at 1.61 per cent and 0.70 per cent, respectively.

After earnings were announced, brokerage Anand  Rathi revised the target price to  Rs 4,910 per share. “Bajaj Finance has comfortably sailed through the recent liquidity crisis and maintained strong growth rates. We continue to remain positive on the company over medium to longer term perspective and assign a HOLD rating on the stock with a revised target price of Rs 4,910 per share,” the brokerage said.

Motilal Oswal in a note said, “In a tough environment and a hyper-competitive festive season, Bajaj Finance maintained robust growth by deepening geographical penetration and increasing repeat business with existing customers. Over past two years, it has enhanced capabilities on two fronts: generating higher fee income and improving deposit franchise. Bajaj Finance is likely to deliver robust return ratios with return on assets /return on equity of 4.3%/22% and healthy AUM Compounded annual growth rate (CAGR) of 25%. ”

Meanwhile, Sensex closed 236 points higher at 41,216 and Nifty gained 76 points to 12,107 amid a rally in global markets. Wall Street‘s benchmark S&P 500 index closed at a new high on Monday, recovering from Friday’s decline. Anxiety about the virus was partially offset by stronger US corporate earnings and expectations that global central banks would step in to support economic growth. Hong Kong‘s Hang Seng index surged 1.2% to 27,583.02 while the Kospi in Seoul rose 0.9% to 2,221.14. The Shanghai Composite Index added 0.3% to 2,900.14. Tokyo’s Nikkei 225 lost 0.6% to 23,685.98 while the S&P-ASX 200 in Australia gained 0.5% to 7,048.90.


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