Bajaj Finance share has delivered robust returns for investors during the last 10 years. An investment of Rs 1 lakh in Bajaj Finance stock on December 18, 2009 would have grown to Rs 1.38 crore on December 18 this year. The firm has outperformed its peers. While Bajaj Finance share price rose 13,743% during the last 10 years, its competitors such as M&M Financial (419%), Cholamandalam Finance (682%), Shriram Transport Finance (167.24%) and Manappuram Finance (492%) could manage only three-digit growth in their share price during the period.
On December 18, 2009, Bajaj Finance share price closed at Rs 29.79 compared to Wednesday's close of Rs 4,119 on BSE. The large cap share has gained 59.19% in the last one year and risen 56.2% since the beginning of this year. 15 of 24 brokerages rate the stock "buy" or 'outperform', eight "hold" and one "underperform", according to analysts' recommendations tracked by Reuters.
On an yearly basis, the firm's customer base growth rose to 32% for fiscal ended 2019 compared to 28% for fiscal ended 2018. The number of new loans disbursed grew at a consistent pace of 50% year-on-year in fiscal 2019. Interestingly, the average ticket size of the loan increased from Rs 56,000 for fiscal ended 2016 to Rs 81,000 for fiscal ended 2019 - higher than that of most peers. Of late, the NBFC has delivered strong earnings performance on a quarterly basis too amid recent rout in the NBFC sector.
Bajaj Finance reported a 63.11 per cent year-on-year (YoY) rise in net profit at Rs 1,506.29 crore for the quarter ended September 2019 against Rs 923.47 crore profit in the corresponding quarter last year.
Total revenue from operations increased 47.95 per cent YoY to Rs 6,322.55 crore during the quarter under review.
In the first quarter of this fiscal, Bajaj Finance reported a 43% rise in net profit, driven by a jump in assets under management.
Q1 profit rose to Rs 1,195 crore as compared to Rs 836 crore in the year-ago period. Assets under management rose 41% to Rs 1,28,898 crore against Rs 91,287 crore in the same quarter of the previous year.
It reported a 50 per cent jump in its standalone net profit at Rs 1,114 crore in last quarter of the fiscal ended March 2019 compared to net profit of Rs 743 crore in the corresponding quarter a year ago. Total income during January-March quarter of 2018-19 rose to Rs 4,887.76 crore from Rs 3,424.99 crore in the year-ago period.
Edited by Aseem Thapliyal