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In spite of positive Q1 results that showed a year-on-year increase in consolidated net profit and operational revenue, the company’s stock has seen a 1% decline in 2023. This underperformance is notable against the backdrop of the Nifty’s 6% rise over the same period.
Bajaj Finserv has been a prominent player in the Financial Services industry and has maintained dividend payments for 16 consecutive years, according to InvestingPro Tips. This strong financial performance is reflected in the company’s accelerating revenue growth and consistently increasing earnings per share.
The company’s subsidiary, Bajaj Finance, reported record quarterly increases in customer franchise and new loans. Yet, the company’s low earnings quality, with free cash flow trailing net income, and the fact that it is quickly burning through cash, are potential red flags, as per InvestingPro Tips.
Analysts advise investors to hold off on investment if the stock price dips below ₹1,480 ($19.75). For those looking for more insights and tips, InvestingPro offers a wealth of information. For instance, there are 16 valuable tips for Bajaj Finserv alone that can be accessed at InvestingPro.
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