Bajaj Finance can touch Rs 1700: Jajoo

Vishal Jajoo, Nirmal Bang Securities is of the view that Bajaj Finance can easily touch Rs 1700 over 9-12 months.
 
Jajoo told CNBC-TV18, “Bajaj Finance came up with its numbers and the Assets Under Management (AUM) over the last one year has grown by a strong 40 percent. Considering this growth the important point is that the asset quality is robust enough with gross NPAs at 1 percent and net NPA at only 0.2 percent. The company is the market leader in the consumer finance space and the market share has gone up from 11 percent in FY12 to 14 percent."

He further added, "Of late they have entered the lifestyle financing business which has a market potential of three times what it is in case of consumer finance business and they are empanelled with 600 plus retailers in that particular space. So one can safely expect an EPS of around Rs 100-105 for this year and Rs 135 or next year. So if one were to give a price-to-book value of around 2 for FY14 times adjusted book value the stock should be safely around Rs 1,700 over the next 9 to 12 months which is a return of around 20 percent even from the present levels.”