Bajaj Finance: Enters Into Retail loans
Posted on Nov 17 2011 at 04:46:43 AM in Finance & Investment
Leading NBFC of India, Bajaj Finance Ltd assumed healthy growth in retail loans market in coming days. Bajaj Finance already offers in Two-wheelers, personal loan, personal computers and consumer durables. Two-wheeler finance schemes avail at 351 bajaj dealers. 71 of cities already taken services of bajaj finance ltd in consumer durables.
Bajaj Finance Ltd managed to retain credit ratings because of high capital sufficiency, promoter supports and asset liability management. The capital adequancy ration of company is 20%.
NBFCs play an important role in making finance service available to the population of India. Regular hike in interest rates changes a mind setup of consumers.
BFL generates 492 crore revenue for last quarter 11. BFL increases up to 53% then of last year.
BFL reported revenues of Rs491.68 crore for the quarter ended September 2011, a jump of 53% over Rs295.64 crore in the previous corresponding quarter. Operating profit in the reporting quarter was Rs130.66 crore compared to Rs75.13 crore in the year-ago period, a leap of 74%. Net profit for the second quarter of the current fiscal was Rs87.37 crore over Rs52.77 crore in the September 2010 quarter, up a huge 65.57%. Operating profit margin (OPM) for the September quarter was 27%.
Bajaj finance ltd provides personal loan in 81 cities. SME loans in 23 cities. Bajaj Finance also launched construction equo finance, loans against securities and home loan.
Average revenues and operating profit growth for the past five quarters were 52% and 131%, respectively, while average OPM for the same period was 27%. For FY10-11, the company reported a net profit of Rs246.96 crore. Its return on net worth was 18%. The company’s board has announced a dividend of 100% (Rs10 per share) for FY10-11. Based on the annualised results for the September quarter, the company’s market-cap to revenue was 1.29 times and market-cap to operating profit was 4.84 times. Boosted by healthy financials, the stock is a good buy at the current price.