Bajaj Finance can move to Rs 800, says SP Tulsian of sptulsian.com.
Tulsian told CNBC-TV18, "Bajaj Finance valuations have become quite attractive, if I take the PE multiple based on FY12 expected earning where I am expecting an EPS of close to Rs 86-90, so share is ruling at a PE multiple of 7. If I take a price to book 1.4, again based on the working or book value as on March 31 2012 and if you see Bajaj Finserv, they are holding 56% stake in the company and they have recently subscribed 60 lakh warrants, which will get converted at Rs 651 where the share prices is presently ruling at."
He further added, "Again the Q1 results have been quite robust, topline of Rs 450 crore with PAT of Rs 91 crore, translating an EPS of Rs 25 and if you take peer comparison with Mahindra and Mahindra Finance, maybe Sriram Transports, I think this stock looks quite attractive compared to its comparable peers of the same size."
"A positive view is maintained on all other three stocks, which I said in spite of them looking expensive. So, Bajaj Finance should be able to move to Rs 800 in the next 8-10 months time if one can take that kind of time horizon."
