Motilal Oswal is bullish on Bajaj Finance has recommended buy rating on the stock with a target price of Rs 1550 in its research report dated May 17, 2017.
Motilal Oswal's research report on Bajaj Finance
Bajaj Finance’s (BAF) 4QFY17 PAT increased 43% YoY to INR 4.5b (in-line). PPoP grew 52% YoY (9% beat), driven by robust AUM growth of 36% YoY and better-than-expected margin performance (11.4%, +130bp YoY). Higher provisions of INR 2.9b (incl. INR 700m additional provisions on account of demon and non-recurring provisions) led to in-line PAT.
At the same time, it is proactive in detecting early warning signals with regard to asset quality. The stock trades at 6.1x/4.9x FY18E/19E BV. We raise FY18E/19E EPS by 1/2%, and increase TP to INR 1,550 (5.7x FY19E BVPS). Buy.
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