Q4 Results: Bajaj Finance vs Jio Financial - Best Stock to Buy?

Bajaj Finance and Jio Financial, two significant players in the Indian financial sector, have reported contrasting performances in their Q4 earnings. Bajaj Finance's consolidated net profit rose by a robust 21% year-on-year (YoY) to ₹3,825 crore for Q4FY24 while its net interest income (NII) surged by an impressive 28% YoY to ₹8,013 crore against ₹6,254 crore during the same period last fiscal year. However, despite this strong performance, Bajaj Finance's share price fell sharply by 7.73%, plunging to ₹6,729.85 on April 26.

On the other hand, Jio Financial presented a modest picture with a single-digit sequential rise in both profit and interest income. The company registered a 6% quarter-on-quarter jump in consolidated net profit amounting to ₹310.6 crores for Q4 FY24; it also recorded a marginal increase of 1 per cent quarter-on-quarter in revenue from operations which stood at ₹418.1 crores compared to ₹413.6 crores in Q3FY24.

Although Jio Financial debuted only recently on bourses last August making its YoY comparison non-applicable yet despite that fact it still managed an upward trend with its share prices rising over three percent weekly after reporting its quarterly earnings on April 19th.

Both companies possess distinctive strengths: Bajaj Finance boasts an enviable track record marked by robust performance whereas Jio Financial is backed strongly by promoters and exhibits ambitious growth plans including recent agreements signed with BlackRock Inc and BlackRock Advisors Singapore Pte Ltd aimed at establishing wealth management and broking businesses jointly within India.

Market experts suggest long-term attractiveness for both stocks but advise investors' choice between them should be determined based on individual risk appetite as well as investment objectives.

Amit Goel from Pace360 prefers Jio Financial over Bajaj Finance citing its high growth potential. Jignesh Shial from InCred Capital, however, favors the latter due to its consistent performance and management's proven ability in navigating challenges.

Technical analysts also favor Bajaj Finance at this juncture as per Riyank Arora of Mehta Equities who observes that despite trading near all-time highs in uncharted territory, a pullback towards ₹300-310 zone for Jio Financial would offer an excellent long-term buying opportunity. Concurrently, he noted that technical indicators and chart structure signaled more stability for Bajaj Finance suggesting any move towards ₹6,000 to ₹6,200 zone could be an equally attractive long-term buy for investors.

In conclusion both companies present intriguing prospects for investors: while Jio Financial offers potentially faster growth opportunities backed by strong promoter support; Bajaj Finance provides steady performance with proven resilience making it a safer bet. The choice between the two boils down to individual investor preferences based on their risk tolerance levels and investment goals.