Sharekhan has given Buy recommendation for Bajaj Finance with a target price of Rs. 7600 in its research report issued on Jul 27, 2022
Sharekhan’s research report on Bajaj Finance
Bajaj Finance reported another strong quarter with healthy operating performance. PAT stood at Rs. 2,596 crore (on consolidated basis), up ~159% y-o-y and ~7% q-o-q versus our estimate of Rs. 2,182 crore, on account of higher provision expectations. Asset quality continued to witness significant improvement with stage 3 assets at 1.25%, down ~35 bps q-o-q. The management expects the GNPA and NNPA ratios to trend lower going ahead. Consolidated AUM grew by 28% y-o-y and 3% q-o-q to Rs. 2.04 trillion in Q1FY2023. The company plans to grow its AUM to Rs. 4 lakh crore by FY2025. The company plans to be fully digital across all its products on application by March 2023. At the CMP, the company trades at 7.2x its FY2023E P/BV.
Outlook
We maintain our Buy rating on the stock with a revised PT of Rs. 7,600.