Stocks of the Bajaj twins – Bajaj Finance and Bajaj Finserv – suffered sharp losses on Monday amid a broad-based sell-off in the market, extending losses to the fifth session in a row. Bajaj Finance shares closed six percent lower at Rs 6,932.8 apiece, and the Bajaj Finserv stock settled at Rs 15,708 apiece, down 3.8 percent for the day.
With Monday's slump, Bajaj Finance has lost 11.7 percent of its value in five back-to-back sessions, and Bajaj Finserv 14.4 percent.
Bajaj Finance reported its financial results for the third quarter of FY22 on January 18. Its net profit increased 85.4 percent on a year-on-year basis to Rs 2,125 crore. The company's net interest income (NII) saw a rise of 39.7 percent on year to Rs 6,000 crore.
Analysts in a CNBC-TV18 poll had estimated the company's quarterly net profit at Rs 2,074.6 crore and NII at Rs 4,910 crore.
The company’s asset quality also improved sequentially. Bajaj Finance's gross and net non-performing assets as of December-end stood at 1.73 percent and 0.78 percent, respectively, as against 2.45 percent and 1.10 percent as of September-end.
On January 20, Bajaj Finserv reported a 2.6 percent year-on-year drop in net profit to Rs 1,256 crore for the third quarter. Its revenue, however, increased 10.2 percent to Rs 17,587 crore.
Indian equity benchmarks suffered sharp losses on Monday, dragged by a sell-off across sectors. The 30-scrip index fell 1,545.7 points or 2.6 percent to end at 57,491.5 and the broader Nifty50 benchmark settled at 17,149.1, down 468.1 points or 2.7 percent from its previous close.
What brokerages say
Morgan Stanley maintained an 'overweight' rating on Bajaj Finance with a target price of Rs 9,060. The brokerage said the company's valuation is not cheap though the earnings momentum keeps it overweight.
CLSA continued with its 'sell' rating on Bajaj Finance with a target price of Rs 6,500. The brokerage said the continuation and longevity of the growth will be a key monitorable going forward. CLSA, however, lifted its FY22-FY24 earnings per share estimates for the NBFC by 3-8 percent.
First Published: IST