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

Bajaj Finance reported strong double-digit growth in profit and interest income year-on-year. Meanwhile, Jio Financial reported sequential single-digit growth in profit and interest income.

Jio Financial made its debut on the stock exchanges in August last year, so the fourth quarter numbers were not year-on-year.

Bajaj Finance announced its March quarter results on Thursday, April 25. The company's stock price plunged 7.73%. INRThe next day it was 6,729.85.

Also read: Why did Bajaj Finance share price plunge 8% despite double-digit YoY growth in PAT, NII in Q4?

Jio Financial announced its fourth quarter financial results on Friday, April 19th. Subsequently he traded on April 22 and 23, the stock price rose 3.54% and 1.27%. However, the stock subsequently booked profits and closed in the red over the next three days. Still, Jio Financial's stock price rose more than 3% for the week.

Also read: Jio Financial Services stock price rises over 73% in 6 months; What drives the rally?

Q4 Results: Key numbers from Jio Financial and Bajaj Finance

Jio Financial Services reported a 6% sequential increase in consolidated net profit for the fourth quarter. INR310.6 million. Operating revenue increased 1% sequentially; INRFrom 418.1 million INR413.6 million in the third quarter of 2024.

Net interest income (NII) increased 4.5% sequentially. INRFrom $26.9 billion in Q3 2024 INR281 million in the fourth quarter of 2024.

The advance forecast operating profit for the current quarter is INR31.7 billion pairs INR315 million compared to the previous quarter.

Also read: Jio Financial Services Q4 results: Net profit increases 6% QoQ INR310.6 million, net interest income INR280.7 million

Bajaj Finance reported a 21% year-on-year (YoY) increase in consolidated net profit. INR382.5 billion yen in the fourth quarter of 2024.

Net interest income (NII) increased 28% YoY in Q4 FY24; INR801.3 billion pairs INR625.4 billion in the fourth quarter of FY2023.

However, financial institutions' net interest margin (NIM) contracted by 21 basis points (bps) in the fourth quarter compared to the third quarter.

Also read: Bajaj Finance's fourth quarter hit by rural lending losses, RBI restrictions

Which stocks should I buy?

Jio Financial and Bajaj Finance each have their own pros and cons. While Jio Financial has strong promoter backing, Bajaj Finance has an impressive track record.

Jio Financial has aggressive growth plans. The company recently entered into an agreement with BlackRock Ltd. and BlackRock Advisors Singapore Ltd. to form a 50:50 joint venture to set up a wealth management and brokerage business in India.

Experts think both stocks are attractive over the long term, suggesting that you should choose one based on your risk appetite.

Amit Goel, Co-Founder and Chief Global Strategist pace 360Jio Financial is preferred over Bajaj Finance considering its high growth potential.

“The choice between Bajaj Finance and Jio Financial depends on the risk appetite and investment objectives of the investor. It's a rising star with a plan. Jio Financial offers higher risk but potentially faster growth opportunities.'' Of these two, I recommend Jio Financial Services,'' Goel said. .

Jignesh Seal, Research Director and Head of BFSI incred capital He stressed that Jio Financial Services is in its early stages and it is too early to predict the stock price.

“Despite strong competition in all segments, Jio Financial enjoys a strong brand name and promoter backing,” Shial pointed out.

Bajaj Finance was selected as a priority by Shayal due to its resilient growth metrics, track record of managing obstacles and consistency of performance.

“We have given an additional rating to Bajaj Finance and the target price is INR9,000 as we continue to bet on the NBFC's aggressive customer acquisition and perfect diversification into new business,'' said Schaal.

Also read: TCS vs HCL Tech vs Wipro vs Infosys: Which stocks to buy after Q4 2024 earnings?

Some technical analysts point out that the technical charts are also in favor of Bajaj Finance at the moment.

Riyank Arora, Technical Analyst meter stocks, noted that Jio Finance is trading near all-time highs in uncharted territory.pullback towards INRThe 300-310 zone should provide an excellent long-term buying opportunity for the stock.

However, Bajaj Finance's technical indicators and chart structure are more stable and indicate any move towards the upside. INR6,000～ INRArora said the 6,200 zone should be a good long-term buy for the stock.

“Comparing the technical chart structure of both the stocks at current levels, if there is a fall of 8-10% from current levels, we can aim to accumulate Bajaj Finance with a long-term vision. INRMore than 10,000,” Arora said.

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Disclaimer: The views and recommendations expressed above are those of individual analysts, experts, and brokerages and are not the views of Mint. We recommend checking with a certified professional before making any investment decisions.

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Published: April 28, 2024, 10:00 AM (IST)