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Bajaj Finance Stock has corrected by nearly 15%-16% from its higher levels of Rs. 5,800 to Rs. 4,800. So What are the reasons behind such a massive fall in the price of Bajaj Finance Stock? Read this blog to know the possible reasons.
Bajaj Finance Stock has gone through an unprecedented rally in its prices from a range of Rs. 1700-1800 to Rs. 5,800 levels. Recently, Bajaj Finance has announced its Q4FY21 updates, which were not much liked by Research Houses, Foreign Broking Houses, etc. As per this business House, Bajaj Finance has not performed in this quarter as per the expectations and observes a slowdown in the business. Due to this reason, sluggishness in the stock can be witnessed.
i) Bajaj Finance is having a customer base of 4.86 Cr. Also, Company has a great ability of Cross-Selling.
ii) A V-Shaped recovery in the customer base has been observed.
iii) New Customer Addition is almost at the peak level.
iv) Asset Under Management (AUM) of the company has again reached its all-time high levels of Rs. 1.53 Lakh Cr. The company has shown an upward trend in the AUM after going through a downward journey in the last 2 quarters.
v) Earlier, the company was showing its conservative approach in terms of Liquidity Surplus/Buffer to efficiently face uncertain events. But, now the Company is reducing their surplus and currently stands at around Rs. 16,000 Cr. which shows their comfortability to deploy the money.
vi) Capital Adequacy Ratio of Bajaj Finance is also at All-Time High Levels of 28.4% which presents the strong situation of the company to face any NPAs pressure if any.
vii) Continuing the path of touching the all-time levels, Bajaj Finance has again marked the all-time high levels in Deposit Book. Bajaj Finance is having a retail and wholesale deposit worth Rs. 25,800 Cr.
viii) Retail Deposit as a % share of total deposit book is now at 76%.
The company has posted robust figures in its quarterly update. However, these figures and the past quarterly performances might not be appraised by the brokerage houses or any other houses but an investor with a long horizon can look forward to this stock. Do proper research and study before investing in any stock.
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