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
Finance
BC finance minister will retire following provincial election in fall
Article content
British Columbia’s finance minister has announced she won’t be running again in the next provincial election after serving in the legislature for nearly two decades.
Katrine Conroy said it will be hard to leave the people she’s worked with over the years, but at 66, it’s time to step back to spend time with her family.
Article content
Conroy has held several portfolios under the New Democrat government and said it’s too hard to settle on a “greatest accomplishment,” but she’s especially proud of her work to waive post-secondary tuition fees for former youth in care.
Article content
She has also served as forests minister, and she thanked Premier David Eby and his predecessor, John Horgan, during the announcement on Friday, saying they “had the courage to appoint this rural woman to cabinet.”
Conroy was first elected in 2005 to represent West Kootenay-Boundary, then re-elected in 2009, 2013, 2017 and 2020.
She said one of her sons had reminded her that a Conroy had been on ballots in the region since 1986. That’s when her late husband Ed Conroy first ran as a school board trustee before he too served as an MLA between 1992 and 2001.
“That’s 38 years of our family supporting both of us in public service to our communities,” Conroy said at an announcement in Castlegar in the southern Interior, her voice faltering with emotion.
“I have been here as an elected official since (2005) and vicariously through my husband when he was an MLA for 10 years.”
In addition to finance, Conroy currently serves as minister responsible for the Columbia Basin Trust, Columbia Power Corporation and the Columbia River Treaty.
She said her work will continue until someone is elected to replace her.
Article content
While the NDP were in opposition before the 2017 election, Conroy was the critic for seniors and Interior economic development, among other roles.
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Finance
Negotiating Climate Finance: India’s Leadership Role in the Global South
Finance
Finance Deals of the Week: $215M Construction Loan in Long Island City
Lending continued at the start of May with a massive $215 million construction loan provided by Kennedy Wilson and Related Fund Management to Grubb Properties to build a new 26-story multifamily apartment complex in Long Island City. There also was a huge $141.5 million construction package sourced by Related Fund Management in tandem with Kennedy Wilson Capital and United Fire Insurance Company in Florida.
The lending heated up on the industrial side, as well, with Stephen Palmese’s Integritas Capital lending $53 million so an owner could refinance vacant industrial space in Brooklyn. Take a look below for all the week’s largest loans!
Loan Amount | Lender | Borrower | Address | Property Type | Broker |
---|---|---|---|---|---|
$215 million | Kennedy Wilson and Related Fund Management | Grubb Properties | 25-01 Queens Plaza North; Queens | Multifamily | CBRE’s Elliott Voreis, Nate Sittema, Kristen Reilley and Owen Hall |
$142 million | Related Fund Management, Kennedy Wilson Capital and United Fire Insurance Company | Related Group, Sydell Group, Tricap | 2700 NW Second Avenue; Miami | Condominium | N/A |
$64 million | Lincoln Financial Group and PCCP | Bixby Land Company | 11145 and 11150 Inland Avenue; San Bernardino, Calif. | Industrial | N/A |
$53 million | Integritas Capital | John Quadrozzi Jr. | 699 Columbia Street; Brooklyn | Industrial | N/A |
$53 million | Bain Capital Real Estate and Oliver Street Capital | Barings | 140 Summit Street Peabody, Mass. | Industrial | Colliers’ John Broderick and Patrick Boyle |
Finance Deals of the Week reflect deals closed or announced from May 6 to May 10. Information on financings can be sent to editorial@commercialobserver.com.
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