Bajaj Finserv has target of Rs 1000: SP Tulsian

Bajaj Finserv has target of Rs 1000, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I have chosen Bajaj Finserv largely because the company has posted good Q3 numbers. Inspite of that, we have not seen any kind of upmove having taken place in the stock."
He further added, "This is the Rahul Bajaj group financial services company and it’s a holding company structure which holds 74% in Bajaj Alliance Life Insurance, Bajaj Alliance General Insurance. Apart from that, they have 62% in Bajaj Finance as a stake. Bajaj Finance has really post very robust numbers. The EPS for FY13 for Bajaj Finance is likely to be closer to about Rs 150 or so. So benefit of that 62% of that is getting clubbed into this company’s performance."
"If I go by the performance of this company for first nine months, they have posted top line of Rs 10,700 crore with profit after tax (PAT) of Rs 660 crore resulting into an EPS of Rs 44. But the trend of the profit booking from the insurance business is always in the fourth quarter."
"Bajaj Finserv, if you see the comparable results, in the previous nine months they had an EPS of close to Rs 32-33 which has been now at Rs 44 and the EPS which was at Rs 90 for FY12 because of as I said that transform from policy holders account to the extent of about Rs 1,000 crore gets added to the income of the company. Because of that I am expecting the company to post an EPS of close to about Rs 110."
"Going by the future as I said that off the insurance business has as well as of the Bajaj Finance - I think the stock is ruling quite cheap, at a PE multiple of less than eight, while the other financial services stocks are now virtually ruling in the double digits. So taking all this into consideration and the kind of run up which we frequently seen - the stock once it corrects by about Rs 75-100 and if it moves up, it swiftly goes back to level of Rs 945-950 very soon. So one can expect a level of Rs 945-950 maybe in next one month to 45 days but I am setting a target of RS 1,000 in next six months or so."