Quarterly Results (Part 4) : Finance Companies in Radar

Quarterly Results are providing the markets the momentum that was lacking for the upward push. However the major push is always from the finance segment. The finance sector of India has been one of the most consistent and the most outperformed areas due to which Indian markets survived through all the events that shook the world markets. For instance Bank Nifty was one of the major gainers among all the other indices. Similarly the banking segment is directly and indirectly dependent on the advancement of the finance sector for getting the amount of business required.

The finance companies under the scanner would be L&T Finance, Muthoot Finance, Cholamandalam Finance, Bajaj Finance and Shriram Finance. The current figures denoted in the blog are the estimates predicted by major analyst firms in the market.

L&T Finance

The company has been enjoying a fair market price value for a long time due to its performance in the segment. The quarterly results this time as well are expected to be rocking for L&T Finance. The net profit of the company is estimated to be up by 51.7% on a YOY basis. The amount of profit is assumed close to 390 Crore Rs. The Net interest income would be up by 9% as per the estimates and this leads to a figure of 1705 Crore Rs.

The Operating profits of the firm are expected to rise by a major 289% to 3460 Crore Rs. If the estimates go right then the company would be having a major boost in its share price as well. 

Muthoot Finance

The results of Muthoot Finance are expected to be below the previous quarterly figures. The profit is expected to drop by 13.8%. This will leave the company to a profit figure of 886 Crore Rs. The net interest income is also going to be down by almost 15% to 1612 Crore Rs on a YOY basis. These results are coming at a time when the gold prices are at a peak level. Thus the company’s share prices may suffer if the estimates go right. The Operating profit of the company is also expected to fall by 20% and thus the amount on a YOY basis is expected to be around 1180 Crore Rs. 

In the times of gold price hike, any investor would expect that Muthoot Finance would post huge amounts of profit figures. However the estimates suggest otherwise.

Cholamandalam Finance

The share price of the company at the current level is 590 Rs. However in the coming time one can expect a rise in the same due to the 14 to 15% rise expected in the net profit figures. As per estimates the profit figures are expected to be around 593 Crore Rs. The net interest income of the firm is also expected to rise by 16% at 1726 Crore Rs. The Operating profit of the firm is also expected to grow by 11.7%. On a YOY basis to 1080 Crore Rs. 

The estimates are better on a quarterly basis as well. The profit would be up by 5.4%, Net interest income would be 4.8% higher and the Operating profit would be 4.5% higher on a quarter on quarter basis if the estimates go right.

Shriram Finance

As per the estimates the company is expected to have a 58.9% rise in the profit figures. This would be around 1081 Crore Rs for this quarter. The net interest income estimates show a rise of 13.6% in the figures. Thus the net interest income figures would be close to 2570 Crore Rs. If the results go as expected the company has shown a major growth based on its previous performance. The operating profits are also expected to be up by 12.6% on a YOY basis.

The current share price of the company is 1270 Crore Rs and the prices would be receiving a major boost if the estimates by the analysts are on point. 

Bajaj Finance

Based on the business this quarter by Bajaj Finance the analysts assume that the profit figures would be up by a minimum 40% for the company on a YOY basis. The previous year has not been exactly good for the Bajaj Brothers. Both the companies received major devaluation. Hence a sharp rise in profit figures on a YOY basis would be bringing back the investor’s confined in the company. The Operating profit of the company is also estimated to grow by 22.4% at 4790 Crore Rs. On the other hand net interest income is also expected to grow at 25%. This would amount to 5820 Crore Rs. 

As an investor or trader sometimes it is essential to understand the estimates and the constant business events in the company. This would assist anyone in making better decisions about planning their investments for the father course of time.