Geojit recommended is bullish on Bajaj Finance recommended buy rating on the stock with a target price of Rs 2570 in its research report dated Jun 01, 2020.
Geojit's research report on Bajaj Finance
Bajaj Finance Limited (BFL) is one of the leading non-banking financial companies (NBFC) in India. It is engaged in lending across retail, SME, and commercial customers and accepts public and corporate deposits. Q4FY20 AUM grew 27% YoY to Rs. 147,153cr. As of April 30th, 27% of the consolidated AUM was under mortarium. Net interest income rose 38.4% YoY to Rs. 4,679cr in 4QFY20. However, PAT fell 19.4% YoY due to high provisioning (+377.4% YoY). Excluding COVID-19 provisioning, adjusted PAT rose 37.9% YoY. Capital adequacy ratio declined to 25.0% vs. 26.8% in Q3FY20, and Tier-I ratio also deteriorated to 21.3% vs. 23.2% in Q3FY20.
Recording strong topline performance in this quarter we believe that the heavy provisioning will give enough buffer in this challenging environment amidst COVID-19, eventually allowing the company to bounce back, we upgrade our rating to BUY with revised target price of Rs. 2,570 based on 3.5x FY22E BVPS.
For all recommendations report, click here
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