Finance
Bajaj Finance vs Jio Financial: Which stock should you buy after Q4 results?
Bajaj Finance reported a decent double-digit rise in profit and interest income year-on-year. Jio Financial, on the other hand, reported a single-digit sequential rise in profit and interest income.
Jio Financial debuted on bourses in August last year, so its Q4 numbers were not comparable year-on-year.
Bajaj Finance reported its March quarter earnings on Thursday, April 25. Its share price plunged 7.73 per cent to ₹6,729.85 the following day.
Also Read: Why Bajaj Finance shares have tanked 8% despite double-digit YoY growth in PAT, NII in Q4?
Jio Financial reported its Q4 earnings on Friday, April 19. In the subsequent sessions on April 22 and 23, the stock rose 3.54 per cent and 1.27 per cent. However, it witnessed profit booking thereafter and closed in the red in the next three days. Still, for the week, Jio Financial share price climbed over 3 per cent.
Also Read: Jio Financial Services stock gains by over 73% in 6 months; what’s driving the rally?
Q4 result: Key numbers of Jio Financial and Bajaj Finance
Jio Financial Services reported a 6 per cent quarter-on-quarter (QoQ) jump in Q4 consolidated net profit to ₹310.6 crore. The revenue from operations increased 1 per cent QoQ to ₹418.1 crore from ₹413.6 crore in Q3FY24.
Its net interest income (NII) rose 4.5 per cent QoQ from ₹269 crore in Q3FY24 to ₹281 crore in Q4FY24.
Pre-provisioning operating profit for the quarter under review inched up to ₹317 crore against ₹315 crore QoQ.
Also Read: Jio Financial Services Q4 results: Net profit jumps 6% QoQ to ₹310.6 crore, net interest income at ₹280.7 crore
Bajaj Finance reported a 21 per cent year-on-year (YoY) rise in consolidated net profit to ₹3,825 crore in Q4FY24.
Its net interest income (NII) for Q4FY24 saw a 28 per cent YoY rise to ₹8,013 crore against ₹6,254 crore in Q4 of FY23.
However, the lender’s net interest margin (NIM) shrunk 21 basis points (bps) in Q4 over Q3.
Also Read: Bajaj Finance Q4 hit by rural loan losses, RBI restrictions
Which stock should you buy?
Jio Financial and Bajaj Finance have their own strengths and weaknesses. While Jio Financial has strong promoter backing, Bajaj Finance has an impressive performance history.
Jio Financial has aggressive growth plans. Recently, the company signed an agreement with BlackRock Inc and BlackRock Advisors Singapore Pte Ltd to form a 50/50 joint venture for setting up wealth management and broking businesses in India.
Experts find both stocks attractive for the long term and suggest one should pick between them according to their risk appetite.
Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, prefers Jio Financial to Bajaj Finance, considering its strong growth potential.
“Choosing between Bajaj Finance and Jio Financial depends on an investor’s risk appetite and investment goal. Jio Financial, backed by Reliance Industries, is a rising star with ambitious plans to dominate the Indian financial landscape. Jio Financial presents a riskier yet potentially faster growth opportunity. We would recommend Jio Financial Services between these two,” said Goel.
Jignesh Shial, the director of research and the head of the BFSI sector at InCred Capital underscored that Jio Financial Services is at an initial stage, and it is early to predict about the stock.
“Jio Financial enjoys a strong brand name and promoter backing though there is intense competition in all segments,” Shial pointed out.
Bajaj Finance is Shial’s preferred pick given the resilient growth metrics, management track record of dealing with roadblocks and consistency in performance.
“We have an add rating on Bajaj Finance with a target price of ₹9,000 as we continue to bet on the NBFC’s aggressive customer acquisition and flawless diversity into new business,” said Shial.
Also Read: TCS vs HCL Tech vs Wipro vs Infosys: Which stock to buy after Q4 results 2024?
Some technical analysts point out that technical charts also favour Bajaj Finance at this juncture.
Riyank Arora, a technical analyst at Mehta Equities, pointed out that Jio Finance is trading in uncharted territory and near its all-time highs. A pullback towards the ₹300-310 zone should offer an excellent long-term buying opportunity for the stock.
However, the technical indicators and chart structure of Bajaj Finance show more stability, and any move towards the ₹6,000 to ₹6,200 zone should be an excellent long-term buy for the stock, Arora observed.
“At current levels, if we compare the technical chart structure of both stocks, then on any 8-10 per cent downside from the current levels, one can look to accumulate Bajaj Finance with a long-term vision for targets of ₹10,000 and above,” said Arora.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 28 Apr 2024, 10:00 AM IST
US stocks fell Thursday as trading resumed after the Christmas holiday, as Wall Street digested one of the only economic data points of the week.
The S&P 500 (^GSPC) was down 0.3% while the the tech-heavy Nasdaq (^IXIC) declined 0.3%. The Dow Jones Industrial Average (^DJI) lost 0.4%, leading the way down.
Meanwhile, bitcoin (BTC-USD) slumped, falling below the $96,000 level as volatile trading continued. Crypto-linked stocks like MicroStrategy (MSTR) tracked the declines.
Markets looked to be struggling in a bid to extend the start of the “Santa Claus rally,” which kicked off with a bang on Tuesday. All three major indexes rose around 1%. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are within striking distance of their records after clawing back gains from a Fed-fueled dive last week.
As Wall Street saunters back from its holiday break, the normally routine release on weekly jobless claims took more of a spotlight than usual, as the only piece of the jobs puzzle on the docket this week.
Labor Department data released prior to the market open showed weekly jobless claims fell to 219,000 compared with expectation of 223,000. However continuing claims surged to 1.19 million in the week ending December 14 to the highest level since November 2021, in a sign the labor market may be cooling.
LIVE 1 update
Angela Marie Hanson, 52, of California, Maryland, has been indicted on charges of embezzlement and theft following allegations of financial misconduct during her tenure as Finance Manager for Historic Sotterley, Inc. According to court documents, Hanson is accused of stealing nearly $15,000 over a five-month period from October 31, 2023, to April 15, 2024.
Hanson, who oversaw financial operations at the historic property, is scheduled for her initial court appearance in the Circuit Court for St. Mary’s County on January 13, 2025. She faces a felony charge of theft scheme involving $1,500 to $25,000, a misdemeanor embezzlement charge, 50 counts of theft between $100 and $1,500, and 17 counts of theft under $100.
Authorities allege that Hanson misappropriated funds using a debit card linked to Historic Sotterley’s “Museum Shop” account. Over 50 ATM withdrawals and several unauthorized purchases were reportedly made at local businesses, including gas stations and convenience stores.
Court filings claim Hanson also transferred funds between Historic Sotterley’s accounts to conceal her activities. Investigators allege that Hanson continued these actions even after her employment ended in February 2024.
The St. Mary’s County Sheriff’s Office led the investigation, which included reviewing banking records, witness testimony, and surveillance footage. Historic Sotterley’s Executive Director identified Hanson as the only individual with access to financial systems and administrative rights during the period in question.
Investigators state that surveillance footage shows Hanson conducting ATM withdrawals using the organization’s debit card. When questioned by law enforcement, Hanson acknowledged managing Historic Sotterley’s finances but denied any intent to defraud.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
The start of a new year can bring a surge of motivation around setting new goals, including financial resolutions.
One way to help those goals become reality, financial experts say, is to make them as specific as possible. Then, track your progress, while allowing flexibility for unexpected challenges.
“It’s easier to track progress when we know where we are going,” says Sylvie Scowcroft, a certified financial planner and founder of The Financial Grove in Cambridge, Massachusetts.
That’s why she encourages her clients to set clearly defined goals, often related to paying off a specific debt, saving a certain amount per month or improving their credit score.
Here are more tips from financial experts about crafting 2025 financial goals:
Pick your top priorities
Trying to accomplish too much can feel overwhelming. Instead, pick your priorities, says Cathleen Tobin, CFP and owner of Moonbridge Financial Design in Rhinebeck, New York.
She suggests focusing on those big, often emotionally-driven goals to find motivation.
“It’s more compelling than just a number,” she says. For example, do you want to make sure you’re on track for retirement or save money for a house? “Start there.”
Be as specific as possible
Scowcroft says she sees clients get tripped up by selecting overly broad goals, such as “get better with money.” Instead, she encourages people to select specific action items, such as “sign up for a budgeting tool and set aside time each month to learn where my money is going.”
That level of specificity provides direction so you know what steps to take next, she adds. For example, if your top priority is to become debt-free, then your specific goal might be to pay off an extra $200 of your debt balance each month.
Tobin says labeling savings accounts so they correspond with goals can also help. An emergency fund could be named something like “Peace of mind in 2025,” so you remember why you’re saving every time you make a transfer.
“It’s more motivating than just ‘emergency fund,’” Tobin says.
Get more financial clarity with NerdWallet
Monitor your credit, track your spending and see all of your finances together in a single place.
Track your progress
Measuring your progress as the year unfolds is also a critical component of successful goal setting, Tobin says.
She compares it to weight loss. If you want to lose 20 pounds by June, then you need to lose about a pound a week for the first six months of the year. Similarly, she says it helps to break savings goals into microsteps that specify what you need to do each week.
Schedule a weekly or monthly check-in with yourself to make sure you are meeting those smaller goals along the way. You might want to review your debt payoff progress or check your credit score, for example.
“Being able to break it down into steps that can be done each week or twice a month really helps,” Tobin says.
Automate where you can
If your goal is to save more money, then setting up an automatic transfer each month can help turn that goal into reality, as long as you know you have the money in your checking account to spare.
“It reduces the mental load,” says Mike Hunsberger, CFP and owner of Next Mission Financial Planning in St. Charles, Missouri, where he primarily supports veterans and current members of the military.
He recommends starting small to ease into the change.
“I wouldn’t jump to double what you’re currently saving,” he says. For example, when it comes to saving in a retirement account, if you’re starting with a 3% contribution, you might want to bump it up to 4%, then slowly increase it from there.
“My number one piece of advice is to start small, but make sure you scale over time,” Hunsberger adds. “Because it’s gradual, you probably won’t notice it impacting your lifestyle.”
Adjust as needed
“Stay flexible,” Scowcroft says. “Part of it is just being kind to yourself and not being too rigid.”
When unexpected challenges come up, such as a big unplanned expense, you might have to pause making progress on your goal and reset.
You might even need to change your goal. Scowcroft says that doesn’t mean you “failed,” just that life changed your plans. Dwelling on any negativity won’t help your forward progress.
Team up with a friend
Sharing your goals with a friend can also make it easier to reach them, Scowcroft says.
“It really helps to have an accountability buddy,” she says.
She suggests putting a regular “money date” with your friend on the calendar so you can ask each other how you’re doing, brainstorm any challenges or even budget together side-by-side.
“It’s a fun excuse to meet up with a friend.”
Get more financial clarity with NerdWallet
Monitor your credit, track your spending and see all of your finances together in a single place.
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