SP Tulsian picks Bajaj Finance as his multibagger

In an interview to CNBC-TV18, SP Tulsian of sptulsian.com picks Bajaj Finance as his multibagger. He believes in the next six months things will revive for the finance stocks and one can expect a target of Rs 1300 from the stock respectively.

Below is the verbatim script of his stock analysis.
Bajaj Finance raised money just couple of months back with rights issue and have showed up their net worth which is now at about Rs 3500 crore. In first quarter, they had a profit after tax (PAT) of about Rs 175 crore while the PAT for whole FY13 was at Rs 590 crore. So, on the earnings per share (EPS) basis they will land up with an EPS of about Rs 140 per share for whole of FY14. However, if you take the absolute numbers the PAT which was sub Rs 600 crore is likely to be Rs 700 crore plus because they have their advantage.
We have been talking of an increase in the rural income, they are the largest consumer durable financials in India and because of good monsoon, because of good crop, disposable income in rural pockets will be very good and that will be the big booster for the company.
I was never excited about the bank license that it can really be a big kicker for the valuations of the stock. But because the banking license eventually is intending for the financial inclusion and the companies who have rural presence like Mahindra and Mahindra Financial they have strong rural presence, Bajaj Finance has strong rural presence will be plus while RBI considers banking licenses.
Apart from that, purely focusing on the performance of the company, they have been gradually improving the bottom-line may be because of additional capital being raised by the fresh rights issue so I am positive. Also, it had a high of about Rs 1600 plus in last three months but because of the carnage, because of the negative perceptions prevailing on the non-bank financial companies (NBFCs) or on all financial stocks the stock has corrected to Rs 1050. So, this seems to be a bottom, one cannot say, may be share can correct to the level of about Rs 1000 but if somebody keeps a view of about six months, things are going to get revived on the finance stocks may be in next couple of months and one can expect a target of Rs 1300.