Bajaj Finance looses ₹500 on Friday’s ending the week on a downward note. The once ‘preferred’ stock of FII’s and DII’s has had poor performance over the week. The share was last traded at under ₹6,000 at the end of week’s trading.
The investor sentiment is bearish for Bajaj Finance despite it reporting highest customer acquisition in a quarter of nearly 3.1 million customers. Despite booking record new loans at 78 lakh, and total customer franchise at 66 million, up nearly 10% from the previous year during the same period.
Bajaj finance is a subsidiary of Bajaj Finserv, an non-banking financial company based out of Pune. Bajaj Finance is a leading company in the lending segment, offering EMI services to its customers. The company has a market cap ₹3.61 lakh crore, P/E ratio of 36.56 and dividend yield of 0.33%. The company had seen a robust recovery post the covid slump reaching a high of ₹8,045.
Analysts are placing the blame on lower than expected Assets Under Management (AUM) as the cause for bearish sentiment despite AUM growing by 27% and there being a 5% YOY growth in New Loans. The expected performance appears to be much higher for the blue chip twin despite having a robust quarter of FY23.
In the past trading week, the stock is down by nearly 8% in 5 consecutive trading sessions. Over the last three months, the company has fallen by nearly 20 percent while the index seeing a growth of 4.4% and reaching new all-time-high in the same period.
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