I am holding 26 shares of Bajaj Finance @ 1975. Should I continue to hold the stock or exit at current level? - Sandesh Dhuri
Bajaj Finance Ltd (Formerly Known as Bajaj Auto Finance Ltd) is a subsidiary of Bajaj Finserv. It is an Indian non-banking financial company (NBFC) 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 valueadded services. The 29-year-old company is the most diversified non-bank in India with a demonstrated track record of profitability.
Headquartered at Pune, the company has a pan–india presence with 294 consumer branches with over 33,000 distribution points. BFL is amongst very few NBFCS in the India to receive FAAA rating from Credit Rating and Information Services India (CRISIL), reflecting the highest level of safety of depositors’ money. The company’s short–term debt programme has been awarded with P1+ rating from CRISIL. Its long–term debt programme has received Aa+/stable from CRISIL and LAA+ from ICRA.
On the financial front, Bajaj Finance Ltd’s revenue increased 37.79 per cent to ₹ 3,150.47 Crore in Q1FY18 from ₹ 2,286.40 crore in Q1FY17. Moreover, the company’s PBDT increased by 41.91 per cent to ₹ 947.31 crore in the first quarter of FY18 vis-àvis ₹ 667.51 Crore in Q1FY17. The company’s net profit also increased by 41.19 per cent to ₹ 602.04 crore for the same period.
On an annual basis, the company’s revenue improved 36.59 per cent to ₹ 9,977.36 crore in FY17 compared to the previous fiscal. The company’s PBDT increased by 42.9 per cent to ₹ 2,888.68 crore in FY17 on a yearly basis. The company’s net profit increased from ₹ 1,278.52 crore in FY16 to ₹ 1,836.55 crore in FY17. Company has good consistent profit growth of 35.20 per cent over 5 years. However, the promoter’s stake has decreased. Considering all the factors, we recommend our reader-investors to HOLD the stock.