Financial basis

Bajaj Finance shares rise ahead of third-quarter earnings

Shares of Bajaj Finance rose more than 1% on Tuesday, ahead of the non-banking financial firm’s quarterly results due later in the day. As of 10:52 a.m., Bajaj Finance stock was up 0.5% at Rs 7,888.3 on BSE, nearly 2% off its 52-week high of Rs 8,020.2 hit in October. 2021.

The company is expected to post a strong set of numbers for the third quarter of the current fiscal year.

Analysts in a CNBC-TV18 poll expect Bajaj Finance to report a net profit of Rs 2,074.6 crore for the December quarter, compared to Rs 1,146 crore for the corresponding period a year ago. They estimate the net interest income (NII) of the company at Rs 4,910 crore, up 14.3% on an annual basis.

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“For the loan aggregators we interacted with and in their areas of presence, the industry volume leader is HDFC Bank among banks and Bajaj Finance among NBFCs,” ICICI Securities wrote in a note released over the weekend. .

“Bajaj Finance is process driven with fast turnaround times especially for unsecured loans, personal loans, car loans, etc. Their payment structure to DSAs is also favorable given the volumes they generate,” the brokerage added.

The DSA (Direct Sales Agent) payout structure is tied to volume between players, meaning the higher the volume, the higher the payout.