Moneycontrol PRO
Upcoming Webinar:Watch a panel of experts discuss: Challenges of continuously evolving regulation for Cryptocurrency, on 7th July at 3pm. Register Now

Buy Bajaj Finance; target of Rs 3800: Sharekhan

Sharekhan is bullish on Bajaj Finance has recommended buy rating on the stock with a target price of Rs 3800 in its research report dated July 21, 2020.

July 28, 2020 / 12:22 PM IST
  • bselive
  • nselive
Todays L/H

Sharekhan's research report on Bajaj Finance

Bajaj Finance Ltd (BFL) reported mixed Q1FY20 numbers, with tepid business growth, but asset quality improved sequentially, and the moratorium share fell to 15.7% of AUM from 27% which is a positive. Adopting a conservative and prudent provision policy, creating additional reserves will help the bank meet challenges on asset quality going forward. Hence, an additional Rs. 1,450 crore COVID-19 provisions (total COVID19 provisions stands at 1.7% of AUM as of June 2020) provides comfort. For Operating performance was strong with PPOP growth of 26% y-o-y aided by cost control, causing cost-to-income (C/I) ratio to fall to 28%. Asset quality improved sequentially with gross NPA and net NPA at 1.40% and 0.50% respectively, from 1.61% and 0.65% in Q4FY20. With a strong balance sheet, robust risk management and prudent management, BFL is a strong franchise for the long term and is well-placed to ride over medium term challenges.


We maintain a Buy rating on Bajaj Finance with a revised price target of Rs. 3,800.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 28, 2020 12:22 pm
ISO 27001 - BSI Assurance Mark