27 October 2016
Fixed-assets
Stock Pick: Bajaj Finance
Bajaj Finance is a leading asset finance NBFCs that is active in four segments—consumer finance, SME finance, commercial finance and rural finance. Total income for Q1 FY17 increased by 39 per cent to Rs 2,286 crore against Rs 1,646 crore in Q1 FY16 and the PAT for Q1 FY17 was Rs 424 crore compared to Rs 276 crore in Q1 FY16.
Why: Its strong presence in consumer finance followed by diversified product suite, cross-sell expertise, efficient risk management and healthy return shows company’s sustainable earnings trajectory.
What: Exposure to credit risk, liquidity risk and interest rate risk and slow economic recovery a cause of concern.