Connect with us

Finance

Bajaj Finance vs Jio Financial: Which stock should you buy after Q4 results?

Published

on

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.

Advertisement

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

Advertisement

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.

Advertisement

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.

Advertisement

“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.

Advertisement

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.

Read all market-related news here

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.

Advertisement

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Published: 28 Apr 2024, 10:00 AM IST

Advertisement

Finance

Oregon Legislature passes controversial campaign finance changes

Published

on

Oregon Legislature passes controversial campaign finance changes
play

Legislators passed a bill March 5 to modify forthcoming changes to Oregon’s campaign finance system despite outcry from good government groups who say the bill creates new loopholes.

Those groups were key in creating House Bill 4024, which was created and passed in 2024 in place of warring ballot measures seeking to overhaul the system.

That legislation included new limits on contributions, including capping individual spending on statewide candidates each cycle at $3,300, and other changes. Parts of the bill were set to go into effect in 2027 and 2028.

Advertisement

Under the new proposal, House Bill 4018, the limits would still begin in 2027, but disclosure requirements and penalties would be pushed to 2031. It also gives the Secretary of State money to update the campaign finance system, but far less than the office previously thought it might need.

Representatives voted 39-19 to pass the bill. A few hours later, the Senate passed it 20-9.

Fourteen of the “no” votes in the House were Democrats, including Reps. Tom Andersen, D-Salem, and Lesly Muñoz, D-Woodburn.

Muñoz told the Statesman Journal she voted against the bill after hearing from people upset with the bill’s process.

Advertisement

Six Democratic senators cast a “no” vote on HB 4018.

Oregon campaign finance reform advocates say they were left out of negotiations

After working together in 2024, advocates said Speaker of the House Julie Fahey, D-Eugene, “ghosted” them.

Good government groups said the bill does far more than address necessary technical fixes to HB 4024.

HB 4018 is “a complete betrayal of the deal that was made two years ago,” Norman Turrill of Oregon’s League of Women Voters said.

Advertisement

Should the bill be signed by Gov. Tina Kotek, the groups said they will push their own changes through a 2028 ballot initiative.

Those advocates have outlined at least 11 different changes they believe the bill creates. The bill’s contents were first shared through a Feb. 9 amendment that was posted after 5 p.m., hours before it received a public hearing in an 8 a.m. work session on Feb. 10 and later, Feb. 12.

Secretary of State Tobias Read told legislators in January his office was requesting $25 million as a placeholder to fund a new campaign finance system for the state. Read was not secretary of state when House Bill 2024 was passed and his office is now working to implement the bill’s changes on a fast approaching deadline.

An additional amendment to the bill instead gives the Secretary of State’s Office $1.5 million for staff, some of whom would be tasked with updating the state’s current system.

House members agreed March 4 to send the bill back to committee, presumably to be amended. A 5 p.m. committee meeting was canceled about an hour after initially being announced.

Advertisement

A work session on HB 4018 was moved to the next morning. After an hour of delay, legislators convened and finished the meeting, moving the bill back to the floor without any changes, in less than three minutes.

A new campaign finance bill, Senate Bill 1502, was introduced and scheduled for a public hearing and work session March 4.

The bill is “very simple,” Senate Minority Leader Bruce Starr, R-Dundee, said. It tells the Secretary of State’s Office to draft a bill for the 2027 session with necessary campaign finance improvements from HB 4024 and HB 4018.

Three senators voted against the bill March 5. It now moves to the House. Legislators have a March 8 deadline to end the session.

“SB 1502 would not correct the severe damage to campaign finance reform that will occur, if HB 4018 B is enacted in this session,” Dan Meek of Honest Elections Oregon wrote in submitted testimony.

Advertisement

Lawmakers appear unsatisfied, but supportive, toward Oregon campaign finance bill

House Majority Leader Ben Bowman, D-Tigard, said HB 4018 made positive changes but acknowledged it was “a challenging vote for many of us.”

“We are implementing this whole new system that is new for all of us, and there are a lot of opinions and there are a lot of details to figure out,” House Minority Leader Lucetta Elmer, R-McMinnville, said. Elmer and Bowman carried the bill in the House. “With that being said, we’re moving forward in good faith, knowing that we’ll also be coming back next year to make sure that those details and all those kinks are worked out.”

Rep. Mark Gamba, D-Milwaukie, said he was concerned about the bill and the “non-inclusive process” that led to it.

Gamba pointed to a letter from the Washington, D.C.-based Campaign Legal Center that states in part that the bill “would substantially revise critical campaign finance reforms enacted two years ago in Oregon” and weaken the state’s campaign finance law.

The current bill is not the only possibility for moving forward, Sen. Jeff Golden, D-Ashland, told lawmakers. Proposed amendments that would have extended implementation timelines without the additional changes were ignored, he said.

Advertisement

“House Bill 4024 and this bill, 4018, have two things in common. One, they were thrown together in a few days behind closed doors, mostly by organizations who dominate campaign funding in the current system,” Golden said. “And two, very few legislators understand what is actually in these bills.”

He urged lawmakers to abandon the system created in House Bill 4024 as an “uncomfortably expensive learning experience” and develop a new plan based on successful programs in other states.

Sen. Sara Gelser Blouin, D-Corvallis, also spoke against the bill on the Senate floor.

“The concern that I had and that my constituents had was technical changes are one thing, but it should not be increasing the amount of money that candidates can take in or hold or carry over,” Gelser Blouin said. “Unfortunately, as it’s drafted, this bill does all of those things.”

HB 4024 is too complicated and “unimplementable” without the fixes in HB 4018, Starr said.

Advertisement

Sen. Lew Frederick, D-Portland, agreed, saying HB 4018 and SB 1502 give reassurance about a system he has concerns about.

“If there were no cameras and the lights were off, I think most people would agree this is not the bill we want,” Rep. Paul Evans, D-Monmouth, said.

Some lawmakers expressed similar feelings of discontentment with the bill in Ways and Means and one of its subcommittees on March 3, but said they felt it was important to make some progress on the issue. Discussions could happen again in 2027, they said.

Rep. Nancy Nathanson, D-Eugene, who ultimately voted in favor of the bill, said March 3 supporting it “is a very painful choice to make.”

Statesman Journal reporter Dianne Lugo contributed to this report.

Advertisement

Anastasia Mason covers state government for the Statesman Journal. Reach her at acmason@statesmanjournal.com or 971-208-5615.

Continue Reading

Finance

Paramount ally RedBird says using Middle East money to help buy Warner Bros. could be a good idea

Published

on

Paramount ally RedBird says using Middle East money to help buy Warner Bros. could be a good idea

  • Last year, Paramount said it would use $24 billion in funding from Saudi Arabia, Abu Dhabi, and Qatar to help buy WBD.
  • Now that Paramount has won that deal, it won’t say whether that’s still the plan.
  • A key Paramount backer suggests that Gulf money would be a good thing for this deal.

We still don’t know if Paramount intends to use billions of dollars from Gulf states like Saudi Arabia to help it buy Warner Bros. Discovery.

But if Paramount does end up doing that, it wouldn’t be a bad thing, says a key Paramount backer.

That update comes via Gerry Cardinale, who heads up RedBird Capital Partners, the private equity company that helped finance Larry and David Ellison’s acquisition of Paramount last year and is doing the same with their WBD deal now.

In a podcast with Puck’s Matt Belloni published Wednesday night, Cardinale wouldn’t comment directly on Paramount’s previously disclosed plans to use $24 billion from sovereign wealth funds controlled by Saudi Arabia, Abu Dhabi, and Qatar to help buy WBD.

Instead, he reiterated Paramount’s current messaging on the deal’s financing: The $47 billion in equity Paramount will use to buy WBD will be “backstopped” by the Ellison family and RedBird — meaning they are ultimately on the hook to pay up. The rest of the $81 billion deal will be financed with debt.

Advertisement

Cardinale also acknowledged what Paramount has disclosed in its current disclosure documents: It intends to sell portions of that $47 billion commitment to other investors: “We haven’t syndicated anything at this time,” he said. “We do expect to syndicate with strategic, domestic, and foreign investors. But at the end of the day, that alchemy shouldn’t matter because it’ll be done in the right way.”

And when asked about concerns about Middle Eastern countries owning part of a media conglomerate that includes assets like CNN, Cardinale suggested that could be a plus.

“I think we want to be a global company,” he said. “You look at what’s going on right now geopolitically. What’s going on right now geopolitically out of the Middle East wouldn’t be, the positives of that would not be happening without some of those sovereigns that you’re referring to.”

He continued:

“The world is changing. We can stick our head in the sand and pretend it’s not, or we can embrace globalization and the derivative benefits both geopolitically and otherwise that come from that. Content generation coming out of Hollywood is one of America’s greatest exports.
I firmly embrace the global nature and orientation that we bring to this from a capital standpoint, from a footprint standpoint, etc. At the end of the day, I do understand some of the concerns that you’ve raised, but that will work itself out between signing and closing because at the end of the day, worst-case scenario, Ellison and RedBird are 100% of this thing.”

All of which suggests to me that Paramount still intends to use money from Gulf-based sovereign wealth funds to buy WBD.

What I don’t understand is why the company won’t say that out loud. Does that mean it’s still negotiating with potential investors? Or that it’s reticent to disclose outside investors, for whatever reason, until it has to? A Paramount rep declined to comment.

Advertisement

Continue Reading

Finance

Crypto bill hits new impasse, raising doubts over its future

Published

on

Crypto bill hits new impasse, raising doubts over its future
Talks on landmark crypto legislation have hit a new impasse after banks said they could not back a compromise pushed by the White House, a development that cast doubt on whether the bill will pass this year and sparked criticism from President Donald Trump ​who accused lenders of trying to undermine it.
Continue Reading

Trending