Sharekhan has given Buy recommendation for Bajaj Finance with a target price of Rs. 7000 in its research report issued on Jul 19, 2021
Sharekhan’s research report on Bajaj Finance
Q1FY2022 results were soft with NII increasing 12% y-o-y and rising by 4% y-o-y. AUM increased 15% y-o-y to Rs. 159,057 crore. Bajaj Finance has launched its payment business and has 320,000 customers as of July 15, 2021. The company plans to garner 5 million customers by Mar 2022 that will help boost customer engagement and thereby, earnings. Asset quality deteriorated owing to the lockdown amid the second wave of COVID-19. GNPLs increased 144% y-o-y/73% q-o-q to Rs. 4,737 crore. BFL trades at 8.2x/6.8x its FY2022E/FY2023E BVPS, backed by business strength.
We maintain a Buy rating on the stock with an unchanged price target of Rs. 7,000.