Sharekhan has given Buy recommendation for Bajaj Finserv with a target price of Rs. 1950 in its research report issued on Sep 30, 2022
Sharekhan’s research report on Bajaj Finserv
Its lending arm, Bajaj Finance Limited (BFL) is a dominant player in retail lending with a large customer franchise of 60.3 million customers. Healthy momentum in customer acquisition and strong cross-selling ability (34.7 mn) would likely support its business growth. BFL expects to double its AUM by FY2025. Its insurance subsidiaries, BALIC and BAGIC are performing well, with strong GWP growth, NBP traction in BALIC with focus on better product mix, and robust underwriting in BAGIC, reflected in healthy combined ratios, all of which is likely to bode well for the company. Healthy traction in all businesses is expected to drive strong earnings growth going ahead.
We maintain our Buy rating on the stock with a revised SOTP-based PT of Rs. 1,950. We believe Bajaj Finserv is an attractive play in the expanding consumer finance space along with capturing value in both life and general insurance businesses.