Sharekhan has given Buy recommendation for Bajaj Finance with a target price of Rs. 9097 in its research report issued on Apr 26, 2022
Sharekhan’s research report on Bajaj Finance
Bajaj Finance reported robust operating performance with strong consolidated AUM growth of 29% y-o-y and 9% q-o-q in FY2022. PAT grew by 80% y-o-y in Q4Y2022, the highest-ever consolidated profit by the company. NII stood at Rs. 6,068 crore versus our expectations of Rs. 5,105 crore, up 30% y-o-y and 1% q-o-q. Asset quality continued to witness improvement during the quarter with stage-3 assets at 1.6%, down by ~14 bps q-o-q. Consolidated AUM at Rs. 1.97 trillion was up ~29% y-o-y/~9% q-o-q, added Rs. 16,250 crore worth of loans sequentially.
At the CMP, the company trades at 8.2x its FY2023E P/BV. We maintain our Buy rating on the stock with a revised PT of Rs. 9,097.