Motilal Oswal - Bajaj Finance Limited (BAJFINANCE) MOSL: BAJAJ FINANCE (Neutral)-Strong performance, fee traction robust

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Motilal Oswal

Alpesh Mehta

EUR 120.00 For Business Accounts Only

MOSL: BAJAJ FINANCE (Neutral)-Strong performance, fee traction robust

BAJAJ FINANCE: Strong performance, fee traction robust

(BAF IN, Mkt Cap USD32.9b, CMP INR4031, TP INR3850, 5% Downside, Neutral)

Bajaj Finance's (BAF) PBT grew 41% YoY in 2QFY20, while PAT increased 63% YoY to INR15b owing to the lower tax rate. The quarter was characterized by continued strong AUM growth and stable margins/asset quality.
AUM increased 38% YoY to INR1.4t, led by strong growth across segments, barring commercial lending. BAF continues being cautious on digital products, auto finance and SME finance. The share of new loans to existing customers increased YoY from 66% to 70%.
The company continues financing a large share of Bajaj Auto's 2Ws (52%) and 3Ws (46%) compared to the historical average of 30-35%.

23/10/2019 14 EN

Underlying

Bajaj Finance Limited

Bajaj Finance Limited is a non-banking finance company (NBFC). The Company is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services. Its consumer lending products include two-wheelers and three-wheelers finance, consumer durables finance, digital products finance, retailer finance, salaried personal loans, e-commerce consumer finance, e-commerce seller finance and home loan. Its SME lending products include loan against property and business loans. Its commercial lending products include loan against securities and financial institutions group lending business. Its rural lending products include personal loans cross-sell, salaried personal loans and gold loans. It offers retail fixed deposits and wholesale fixed deposits. It is engaged in life insurance distribution, general insurance distribution and mutual fund distribution.

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INE296A01024 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Alpesh Mehta

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MOSL: BAJAJ FINANCE (Neutral)-Strong performance, fee traction robust

Bajaj Finance Ltd: 1 director

MOSL : BAJAJ FINANCE: Earnings in line; digital transformation aiding momentum

MOSL:BAJAJ FINANCE: Beat on earnings; momentum to only get stronger from hereon

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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