Bajaj Finance share price up over 2% post Q4 numbers; Credit Suisse cuts target

Bajaj Finance share price rose 2.6 percent in early trade on May 20 after the company announced its Q4 numbers.

The company has reported a profit after tax of Rs 948 crore for the quarter ended March 2020, a 19.4 percent decline compared to numbers of the corresponding period last fiscal.

Loan losses and provisions (expected credit loss) for the quarter increased to Rs 1,954 crore against Rs 409 crore in Q4 FY19.

Gross non-performing assets (NPA) for the quarter remained flat at 1.61 percent on a sequential basis, while net NPA declined 5 bps to 0.65 percent compared to 0.70 percent in the previous quarter.

Also Read - Bajaj Finance Q4 profit falls 19% to Rs 948 crore on COVID-19 provisions; NII jumps 38%

Credit Suisse | Rating: Neutral | Target: cut to Rs 2,000 from Rs 2,800

According to Credit Suisse, in terms of liquidity and capital, the company is better placed versus the other NBFCs, while strong 7 percent PPoP ROA should enable it to absorb the higher credit costs, reported CNBC-TV18.

Research house cut EPS estimate by 24-53 percent, it added.

Morgan Stanley | Rating: Overweight | Target: Rs 2,740

The company's PPoP margin expanded to a new high via cost control, while the provisions was higher because of COVID-19 and will stay high in FY21.

Morgan Stanley expects the company to earn the highest RoE in their coverage in FY21, reported CNBC-TV18.

At 09:24 hrs, Bajaj Finance was quoting at Rs 1,972.95, up Rs 5.70, or 0.29 percent on the BSE.