#BajajFinance is falling based its loan book which is 90% unsecured. As per experts it would be difficult to collect. Let's clarify few things.
1) Bajaj Finance loan book consists of customers of the avg #Cibil score is 750. They don't approve anything below 700 at all.... (1)
1) Bajaj Finance loan book consists of customers of the avg #Cibil score is 750. They don't approve anything below 700 at all.... (1)
2) The customer repayment may not hit hard since since the avg EMI is not more than Rs:5000/-(approx)
3) In current scenario the customer default would be limited since the Cibil plays a major role in customer credit worthiness
3) It has a mkt share of 72% consumer finance and..
3) In current scenario the customer default would be limited since the Cibil plays a major role in customer credit worthiness
3) It has a mkt share of 72% consumer finance and..
And at current scenario ( last one year sales Cash vs Finance) the sales thru finance contributes 50% of the total sales in major segments.
4) The collection process of Bajaj is far stronger compared to its nearest competitor interns of infra and manpower.
4) The collection process of Bajaj is far stronger compared to its nearest competitor interns of infra and manpower.
5) Bajaj has got a stricter policy of balck listing not only the customer but also the channel partner if the deliquncy is not helped out from their side. Since the portion of finance to sale is 50% where Bajaj occupies 75% share, no dealer can survive the brunt.
We believe #BajajFinance is going to be the least affected in the whole NBFC basket compared to its peers. And thus we belive accumulation of the stocks in current scenario will give investors solid return in upcoming period.
@CNBCTV18News #Smartinvestors #Longterminvesting
@CNBCTV18News #Smartinvestors #Longterminvesting
