Bajaj Finance Share: Bajaj Finance Shares Fell 8% Or About Rs 550 Today

Bajaj Finance Share: Bajaj Finance shares fell 8% or about Rs 550 today after the company’s assets for the quarter that ended December 31 came in below market expectations.

There was a sharp fall in the shares of this company, and investors in every stock got a ‘hard blow’.

Sharing data updates with the exchanges, Bajaj Finance said that its assets under management (AUM) grew to around 230,850 crores as on 31 December 2022 from 181,250 crores as on 31 December 2021.

Bajaj Finance’s wealth increased by Rs 12,500 crore in FY23.

Although it was above 6 percent on a quarter-on-quarter basis, analysts say the performance was slightly lower than market expectations, as the third quarter usually sees companies reporting strong results on the back of festive demand.

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Why shares fell.

The AUM growth of Bajaj Finance was below expectations. However, the company’s growth in the distribution and production segments remained strong.

Capital Adequacy Ratio or CRAR was flat at 25.1% on a quarter-on-quarter basis, indicating a weak growth rate and lower utilization of capital.

As per the quarterly update, Bajaj Finance acquired 31 lakh new customers in Q3 as against 26 lakh customers in 2QFY23.

In a note, Jefferies said Bajaj Finance’s 3QFY23 pre-quarter update shows some moderation in AUM growth. Growth in new loan bookings was also slow at 5% YoY.

Market watchers said it has to be seen whether this is due to short-term securities lending business or retail/SME loans or some other reason.

The company’s weak growth could weigh on the stock in the near term. The deposit book of the company stood at Rs 43,000 crore.

What do experts say?

Jefferies has a hold rating on Bajaj stock, while Motilal Oswal has a buy rating on the stock. At 9:40 am, shares of Bajaj Finance were trading down 5% at ₹6,269 per share.

Till the time of writing the news, shares of Bajaj Finance were trading at 6,092.40, down 7.27 percent.