Brokerages like Kotak, MOFSL and Citi anticipate pressure on net interest margin to continue to trouble Bajaj Finance in FY25 amid high cost of borrowings.
Bajaj Finance shares dropped on BSE as investors reacted negatively to Q4 results. Motilal Oswal downgrades the stock to neutral rating citing weak FY25 guidance. Concerns include new product segments like cars, tractors, CVs, and potentially MFI.
Net profit for the forth quarter is likely to rise to 22% year-on-year (YoY), while net interest income (NII) for the same period is seen growing up to 30% year-on-year.
Bajaj Finance projects strong Q4 results with expected profit and NII growth. Despite RBI restrictions affecting loans, AUM reached Rs 3.3 lakh crore. Key aspects include NIM, cost of funds, and expense control efforts to manage credit costs.
Bajaj Finance not only delivered 4-7 per cent beat on NII, pre-provision operating profit and PAT, its commentary also doused emerging concerns pertaining to growth, competition in B2B business