Bajaj Finance gained over 50 percent every year since FY14
Shares of Bajaj Finance have given over 1600 percent return in the past five years on the back of sustainable growth. The stock has risen over 50 percent every year since FY14, becoming the top gainer among Sensex and Nifty50 stocks during the given period.
Bajaj Finance has rallied 5 percent so far in this financial year 2019-20, against 2 percent rise in the benchmark indices.
Since FY10, the stock outperformed the benchmark indices Nifty and Sensex for 10 consecutive fiscal years and has appreciated 451 times. The stock surged 56 percent in FY14, 129 percent in FY15, 68.5 percent in FY16, 69 percent in FY17, 51 percent in FY18 and 71 percent in FY19.
For the March-quarter, brokerage firm Motilal Oswal expects the company to report net profit at Rs 1,062 crore up 42.1 percent year-on-year (up 0.2 percent quarter-on-quarter). Net sales are expected to increase by 44.4 percent YoY to Rs 3,270.7 crore and EBITDA is likely to rise 54.7 percent YoY to Rs 2,127.6 crore.
The company delivered a stellar performance in a tough liquidity environment with profit after tax of Rs 1,060 crore, up 54 percent year-on-year (YoY) in the third quarter of FY19.
“Going forward, Bajaj Finance remains well-positioned to deliver sustainable profitable growth driven by strong customer acquisition engine, increasing rural footprint with the diversified product offering, rising contribution of fee income, superior asset quality with capital adequacy ratio (CAR) of 21 percent,” JM Financial said in a report.
According to Kotak Securities, Bajaj Finance is expected to deliver 42 percent YoY profit growth, in line with seasonal trends. Typically, first and third are strong quarters, hence, the brokerage expects loan growth at 7 percent QoQ in 4QFY19, down from 10 percent in 3QFY19, it said.