InCred Equities - Bajaj Finance Ltd

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	364,340	461,054	588,646	736,791
Total Non-Interest Income (Rsm)	85,200	97,284	119,965	133,562
Pre-provisioning Operating Profit (Rsm)	300,279	377,838	493,888	615,894
Total Provision Charges (Rsm)	(79,660)	(89,483)	(109,798)	(133,961)
Net Profit (Rsm)	167,617	215,689	287,299	360,486
Core EPS (Rs)	269.98	347.41	462.75	396.45
Core EPS Growth	16%	29%	33%	(14%)
FD Core P/E (x)	34.71	26.98	20.25	23.64
DPS (Rs)	56.00	55.00	75.00	95.00
Dividend Yield	0.60%	0.59%	0.80%	1.01%
BVPS (Rs)	1,557.4	1,848.2	2,232.7	1,824.4
P/BV (x)	6.02	5.07	4.20	5.14
ROE	19.3%	20.4%	22.7%	23.7%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	364,340	461,054	588,646	736,791
Total Non-Interest Income	85,200	97,284	119,965	133,562
Operating Revenue	449,540	558,338	708,611	870,354
Total Non-Interest Expenses	(75,083)	(89,349)	(104,539)	(121,265)
Pre-provision Operating Profit	300,279	377,838	493,888	615,894
Total Provision Charges	(79,660)	(89,483)	(109,798)	(133,961)
Operating Profit After Provisions	220,618	288,355	384,089	481,933
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	220,618	288,355	384,089	481,933
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	220,618	288,355	384,089	481,933
Exceptional Items
Pre-tax Profit	220,618	288,355	384,089	481,933
Taxation	(53,002)	(72,665)	(96,790)	(121,447)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	167,617	215,689	287,299	360,486
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	167,617	215,689	287,299	360,486

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits
Avg Liquid Assets/Avg Assets	90.1%	91.3%	92.6%	93.1%
Avg Liquid Assets/Avg IEAs	102.2%	102.6%	102.8%	101.5%
Net Cust Loans/Assets	0.9%	1.0%	1.0%	1.1%
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans	2,218.7%	2,025.4%	1,882.1%	1,732.5%
Asset Risk Weighting
Provision Charge/Avg Cust Loans	2.15%	1.91%	1.85%	1.80%
Provision Charge/Avg Assets	1.89%	1.70%	1.66%	1.65%
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	4,122,023	5,256,768	6,624,942	8,280,199
Liquid Assets & Invst. (Current)
Other Int. Earning Assets
Total Gross Int. Earning Assets	4,122,023	5,256,768	6,624,942	8,280,199
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	4,122,023	5,256,768	6,624,942	8,280,199
Intangible Assets
Other Non-Interest Earning Assets	9,776	12,708	16,521	21,477
Total Non-Interest Earning Assets	59,369	71,453	86,302	104,619
Cash And Marketable Securities	135,435	211,531	254,500	145,255
Long-term Investments	344,441	347,108	345,908	422,318
Total Assets	4,661,269	5,886,859	7,311,653	8,952,390
Customer Interest-Bearing Liabilities
Bank Deposits
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	3,612,487	4,628,100	5,765,135	7,038,628
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	59,413	111,289	160,348	254,923
Total Liabilities	3,671,900	4,739,389	5,925,483	7,293,552
Shareholders Equity	966,929	1,147,470	1,386,169	1,658,839
Minority Interests
Total Equity	966,929	1,147,470	1,386,169	1,658,839

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	23.1%	26.5%	27.7%	25.2%
Operating Profit Growth	25.4%	25.2%	28.8%	24.0%
Pretax Profit Growth	14%	31%	33%	25%
Net Interest To Total Income	81.0%	82.6%	83.1%	84.7%
Cost Of Funds	7.57%	7.40%	7.00%	6.80%
Return On Interest Earning Assets	16.5%	16.3%	16.0%	15.7%
Net Interest Spread	8.94%	8.93%	9.03%	8.93%
Net Interest Margin (Avg Deposits)
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	27%	24%	22%	22%
Interest Return On Average Assets	8.66%	8.74%	8.92%	9.06%
Effective Tax Rate	24.0%	25.2%	25.2%	25.2%
Net Dividend Payout Ratio	20.7%	15.8%	16.2%	24.0%
Return On Average Assets	3.98%	4.09%	4.35%	4.43%

(91) 22 4161 1553 meghna.luthra@incredresearch.com

(91) 22 4161 1569 rishabh.jogani@incredresearch.com

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Market Data

Source: Bloomberg