Rs 36/Share Dividend: Record Date On 21 June; Buy The Bajaj Group Stock To Be Eligible For 1800% Payout?

With its headquarters located in Pune, Bajaj Finance Limited is an Indian non-banking financial company. As a subsidiary of Bajaj Finserv Ltd., Bajaj Finance Ltd. (BFL) is an NBFC-Investment and Credit Company (NBFC-ICC) that is registered with the Reserve Bank of India (RBI). Along with the announcement of its highest-ever dividend of Rs. 36 per share, the company has released its financial results for the quarter and year ending March 31, 2024. The news prompted Bajaj Finance's shares to close 7.73% down on Friday at Rs 6729.85 a share on the BSE.

Bajaj Finance Dividend

"In line with the Company's Dividend Distribution Policy, the Board of Directors have recommended a dividend on equity shares at the rate of Rs. 36 per share (1800%) of face value of Rs. 2 each for the financial year ended 31 March 2024. The said dividend, if declared, by the shareholders at the ensuing Annual General Meeting, will be credited/dispatched on or about 26 July 2024 or 27 July 2024. Further, pursuant to Regulation 42 of the SEBI Listing Regulations, the record date for the purpose of determining the members eligible to receive the dividend for the financial year ended 31 March 2024, has been fixed as 21 June 2024," said Bajaj Finance in a regulatory filing.

Bajaj Finance Financials

Consolidated profit after tax for the firm came to Rs 3,825 crore in Q4 of FY24 and Rs 14,451 crore in FY24. As of March 31, 2024, the total assets under management were Rs 330,615 crore. The company's profit after tax climbed from Rs 3,158 crore in Q4 FY23 to Rs 3,825 crore in Rs Q4 FY24, a 21% rise. While net total income climbed by 25% to Rs 9,714 crore in Q4 FY24 from Rs 7,775 crore in Q4 FY23, net interest income jumped by 28% to Rs 8,013 crore in Q4 FY24 from Rs 6,254 crore in Q4 FY23.

Compared to 7.56 million in Q4 FY23, the number of new loans booked increased by 4% to 7.87 million in Q4 FY24. In Q4 FY24, the company's profit before tax climbed by 20%, from Rs 4,261 crore in Q4FY23 to Rs 5, 105 crore. When compared to March 31, 2023, when they were 0.94% and 0.34%, respectively, Gross NPA and Net NPA as of March 31, 2024, were 0.85% and 0.37%, respectively.
As of March 31, 2024, there were 83.64 million customer franchises, up 21% from 69.14 million the previous year. In Q4 FY24, the business's client base increased by 3.23 million.

The company has the highest credit rating available-AAA (Stable) for its fixed deposit programme from CRISIL and ICRA, A1+ for its short-term debt programme from CRISIL, ICRA, and India Ratings, and AAA/Stable for its long-term debt programme from CARE and India Ratings. S&P Global Ratings has issued an 888-/Stable long-term issuer rating and an A-3 short-term issuer rating to the company.

Compared to FY23, when there were 29.58 million new loans booked, there were 36.20 million in FY24, a 22% growth. In FY24, the company's customer base increased by 14.5 million. From Rs 22,989 crore in FY23 to Rs 29,582 crore in FY24, net interest income climbed by 29%. From Rs 28,858 crore in FY23 to Rs 36,258 crore in FY24, net total income climbed by 26%. From Rs 11,508 crore in FY23 to Rs 14,451 crore in FY24, profit after tax climbed by 26%.

Bajaj Finance Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "BAJFINANCE is currently trading at 6731.20 levels, having retraced from the resistance barrier at 7360 levels. Notably, the stock has breached its pivotal support level of 6800, indicating a potential continuation of the downward trajectory towards the subsequent support at 6350 levels. Furthermore, BAJFINANCE has commenced trading below key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Averages (EMA), underscoring the prevailing bearish sentiment."

"The momentum indicator, Relative Strength Index (RSI), echoes this sentiment, currently tracking at 39.83 levels and indicating downward momentum. In light of these technical signals, investors are advised to exercise caution, refraining from fresh investments until a reversal pattern emerges on the charts. Monitoring price action and waiting for confirmation of a bullish trend reversal would be prudent before considering new positions in BAJFINANCE. This cautious approach aligns with risk management principles and ensures that investments are made under more favorable market conditions," the analyst further added.

Disclaimer

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