Buy Bajaj Finance; target of Rs 1800: Motilal Oswal

Motilal Oswal is bullish on Bajaj Finance has recommended buy rating on the stock with a target price of Rs 1800 in its research report dated July 19, 2017

July 20, 2017 / 15:23 IST

26 Aug, 2025 12:21

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Motilal Oswal's research report on Bajaj Finance
Bajaj Finance’s (BAF) 1QFY18 PAT increased 42% YoY to INR6 b ( 4% beat). However, this belies its strong operating performance – PPoP grew 46% YoY (6 % beat), d riven by robust AUM growth of 39 % YoY , and margins expanded strong ly by 90bp YoY to 12.9% . AUM continued its robust growth trajectory (+39% YoY, +4.4% QoQ) to reach INR688 b, led by impressive growth in consumer finance (+43% YoY) and commercial business (+68 %). Within consumer business, personal cross -sell loans grew 59% YoY to INR69 .6b ( tenth consecutive quarter of 50%+ AUM growth ), while salaried home loans rose 83% YoY. The company ’s penetration of Bajaj 2Ws remained at 37% .

Outlook

At the same time, it is proactive in detecting early warning signals with regard to asset quality. We raise FY18E/19E EPS by 1/2%, and increase TP to INR1, 800 ( 6.6 x FY19E BVPS). Buy .

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