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Shares of Bajaj Finance tumbled over 8 per cent to Rs 6,032.25 on the BSE during Thursday’s intraday trade after the consumer finance company reported that assets under management (AUM) grew by 27 per cent year-on-year (YoY), lower than market expectations, to Rs 2.30 trillion as of December 31, 2022.
The stock closed the day at Rs 6,099.85, down over 7 per cent compared to the previous close.
In the third quarter for the 2022-23 financial year (Q3FY23), the firm’s AUM grew 6 per cent QoQ or by approximately Rs 12,500 crore.
AUM growth suggested that disbursements were strong across product segments, said Motilal Oswal Financial Services.
Among key highlights, the brokerage, which has a ‘buy’ rating on the stock, said that the new customer acquisition run-rate was healthy in Q3FY23. It also said that AUM growth was lower than expectations.
Bajaj Finance brought in 3.1 million new customers (against 2.6 million in Q2FY23). The new run-rate was healthy in Q3FY23. Total customer franchise stood at 66 million, up 19 per cent YoY.
New loans booked during the quarter witnessed highest growth, at 7.8 million against 7.4 million in Q3FY22. The customer franchise increased by 3.1 million in Q3FY23, to 66 million against 55 million in Q3FY22. The company’s liquidity position continues to remain strong with net liquidity surplus of Rs 12,750 crore.
Bajaj Finance witnessed decent growth on the business front, though new customer addition remains strong, ICICI Securities said in a note.
With Thursday’s decline, Bajaj Finance has underperformed the market in the recent past. In the past three months, the stock has slipped nearly 20 per cent, as compared to 4.4 per cent rise in the S&P BSE Sensex. In the past one year, it has declined 19 per cent, as against 0.67 per cent gain in the benchmark index.
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