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Last Updated : May 17, 2019 10:26 AM IST | Source: Moneycontrol.com

Bajaj Finance hits 52-week high, brokerages up target price post Q4 show

Most brokerages maintained rating on Bajaj Finance post March quarter results, but raised target price up to Rs 3,600. That's an upside of over 10 percent from the current level.

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Most brokerage firms maintained their rating on Bajaj Finance, post March quarter results, but raised their target prices up to Rs 3,600, which translates into an upside of over 10 percent from the current levels.

The stock hit a fresh 52-week high of Rs 3,246.85 on Friday, rallying nearly 17 percent so far in 2019 and over 60 percent over the last year.

Bajaj Finance on May 16 reported a 50 percent jump in its standalone net profit at Rs 1,114 crore for January-March. It had posted a profit of Rs 743 crore in the same quarter a year ago.

Total income during the quarter under review rose to Rs 4,887.76 crore, from Rs 3,424.99 crore in the year-ago period, the company said in a regulatory filing.

Jefferies maintained buy rating on Bajaj Finance, post Q4 results, but raised its target price to Rs 3,600, from Rs 3,100 earlier.

The Q4 profit came ahead of Jefferies estimate on stronger net interest margin (NIM). Asset quality was relatively stable and strong growth seen in new customers is a positive sign.

Operating expenses could ease further on operating leverage gains. The global investment bank lifted FY20-21 EPS estimate by 8 percent. Going forward, solid earnings growth and returns should support premium valuations, it added.

Another brokerage firm, Morgan Stanley, maintained its Equal Weight call on Bajaj Finance despite steep valuations post earnings, but raised its target price to Rs 2,950, from Rs 2,600 earlier.

In a tough environment, the company continued to grow its asset under management (AUM) by over 40 percent and raised earnings estimates by 9-8 percent for FY20-21.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on May 17, 2019 10:26 am
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