Bajaj Finance shares plunge 5% on Q3 asset quality woes. Should you buy?

The board has also approved the reappointment of Neeraj Kanwar as the managing director of the company for a period of 5 years, effective April 1, 2024.

HDFCs net profit for the quarter is likely to see 4.4% on-year growth to Rs 3,864 crore, according to the average of estimates given by five brokerages. In the same period last year, the company posted a net profit of Rs 3,700 crore.

The fast moving consumer goods major is seen reporting a double-digit growth in the consolidated net profit for the March quarter, on the back of a similar growth in the topline.

Bajaj Finance's Core AUM grew by 29% to approximately ₹ 247,350 crore as of 31 March 2023 as compared to ₹ 192,087 crore (AUM excluding short-term IPO financing receivable of ₹ 5,365 crore) as of 31 March 2022. AUM in Q4 FY23 grew by approximately ₹ 16,500 crore.

SBI Q2 Preview: Net profit for the second quarter is seen growing by a marginal 2% year-on-year (YoY), according to the average estimate of four brokerages. Net interest income (NII) in the same period is expected to grow 10% YoY. Analysts also expect operating profit growth to be flat YoY, again due to higher operating expenses and NIM pressure in the September quarter.

Bajaj Finance shares rose 3% following the firm's announcement of its consolidated net profit of INR 3,158 crore for the quarter ended 31 March, a 30% YoY increase. Its net interest income surged 28% to INR 7,771 crore YoY, while its assets under management rose 29%. The firm recommended a dividend of INR 30 per share for the year ending March. Analysts largely suggest holding onto the stock while Jefferies maintained its 'buy' rating due to its potential to enter the credit card market and favourable risk-reward outlook.

Total income for the quarter was Rs 3,125 crore, up 25% y-o-y, aided by growth in asset book, a release by the NBFC said. Disbursements at Rs 12,165 crore were higher by 28% y-o-y. Loan book increased sequentially by 4.8% to Rs 86,732 crore.

Bajaj Finance shares declined even as the NBFC firm posted a strong performance in the September quarter. While Jefferies and CLSA reiterated their buy views on Bajaj Finance, domestic brokerage Motilal Oswal remains the most bullish in terms of targets among others. However, the chinks in its armour remain on the margins front, according to analysts.

Online beauty platform Nykaa is expected to report a 31% YoY growth in Q4 revenue at Rs 1,277 crore due to a strong festive season base; however, sales are set to decline by almost 13% on a sequential basis. Hindalco Industries net sales for the same quarter are expected to decline by 4% to Rs 53,500 crore and profits falling by 44% to Rs 2,300 crore. Meanwhile, Life Insurance Corp (LIC) posted a consolidated net profit of Rs 8,334 crore for Q3 and recorded a 14% YoY increase in net premium income to Rs 1.12 lakh crore in December quarter.

Revenues grew 4% YoY to Rs 16,569 crore. Profit hit by pricing pressure and delayed purchases by channel in the post-patent space