Can Bajaj Fin top its guidance?

High base effect Bajaj Finance's year-on-year loan book growth rates have declined consistently in the past six quarters.

- Manish Joshi [e-mail]

Shares of Bajaj Finance Ltd hit a record high of ₹1,025.70 on Monday, marking a 4% gain since the announcement of changes to the goods and services tax (GST) on 3 September. Trading volumes surged to nearly 3x the monthly average on the first day after the GST rate cut, prompting stock exchanges to seek clarification from the company.

If lower GST on consumer durables is indeed going to spur spending, then Bajaj Finance is a beneficiary as nearly half of its standalone lending book is consumer loans. Within that, nearly 70% of the loans are business-to-consumer (B2C). GST for air conditioners, televisions and dishwashers has been cut to 18% from 28%, potentially boosting demand.