Bajaj Finserv Ltd. Q4FY21 - Earning Analysis | Globe Capital
17-Nov-2021
Bajaj Finserv Ltd. Q4FY21 – Earning Analysis

At the CMP of Rs. 10491, the stock is trading at full year P/BV multiple of 4.65 times with the full year book value of Rs 2252 per share.

Q4 FY21 Overview and Verdict
CMP
Rs. 10491
Verdict
Higher than estimates

At the CMP of Rs. 10491, the stock is trading at full year P/BV multiple of 4.65 times with the full year book value of Rs 2252 per share.

The Company reported its consolidated net profit up by 405% to Rs 979 crore for the fourth quarter ended in March 2021, driven by its strong insurance business against a net profit of Rs 194 crore during the corresponding January-March period of 2019-20.

The consolidated income up by 15% during the March 2021 quarter increased to Rs 15,387 crore as against Rs 13,294 crore in the corresponding period of the previous financial year. 

The Company has reported an EPS of Rs 61.5 against Rs 12.2

The board has recommended a dividend of 3 per share or 60% on the face value of Rs 5.

Full Year Earnings:

The profit after tax in 2020-21 rose to Rs 4,470 crore from Rs 3,369 crore in the year-ago period.

Its consolidated total income was at a record of Rs 60,591 crore in 2020-21 compared to Rs 54,351 crore in 2019-20.

The Company has reported an EPS of Rs 280.9 against Rs 211.7

The company’s subsidiary Bajaj Allianz General Insurance Company recorded an all-time high annual profit and continued to deliver robust improvement in its underwriting result.

During the year, the general insurance arm posted a profit of Rs 1,330 crore as against Rs 999 crore in the previous fiscal. Similarly, life insurance arm registered an all-time high annual gross written premium in FY21 at Rs 12,025 crore. Its Assets under Management reached an all-time high level of Rs 73,773 crore at year end.

Management Takeaways:

As per management the Company had satisfactory profit growth on a consolidated basis, in an extremely demanding year.

With strong solvency, well above the required capital supported by healthy liquidity, continued focus on risk and collections, digitized processes and improved cost structures, we are in a better shape than we were last year to face any adverse event.

Disclosure

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