Prabhudas Lilladher has given Buy recommendation for Bajaj Finance with a target price of Rs. 6840 in its research report issued on Jul 22, 2021

Prabhudas Lilladher’s research report on Bajaj Finance

Finding opportunities in adversity, Bajaj Finance (BAF) stands geared to transform from a conventional retail lender to a full-fledged financial services ecosystem. It aims to be a one-stop shop offering superior customer services across the value chain encompassing digital lifestyle stores & credit, digital payments, health, insurance and wealth marketplaces by integrating offline as well as online platforms. We believe BAF’s robust framework would 1) accelerate its customer franchise to ~88mn (FY24) 2) enable harnessing existing customer potential backed by newly launched marketplaces/ payments apps and 3) exercise leaner cost structures.

Outlook

Against this backdrop, we upgrade BAF to ‘BUY’ (earlier Accumulate) with TP of Rs 6,840 valuing at 9.0x PABV FY23E.

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