ICICI Direct has given Hold recommendation for Bajaj Finserv with a target price of Rs. 11500 in its research report issued on Apr 30, 2021
ICICI Direct’s research report on Bajaj Finserv
Bajaj Finserv reported a mixed performance with a gradual pick-up in lending business and robust growth in life insurance while general insurance momentum was slower. Consolidated topline grew 15.7% YoY to Rs 15387 crore, led by improved traction in insurance business, partially offset by moderation in lending business. Consolidated earnings increased 4x YoY to Rs 980 crore with improvement in all segments.
We revise our target price to Rs 11500/share (earlier Rs 10500), based on SOTP valuation, implying a multiple of ~26x on FY23E consolidated earnings. However, given recent price run up, we downgrade the stock from BUY to HOLD.