Moneycontrol Be a Pro
Get App
Last Updated : Oct 23, 2019 02:57 PM IST | Source: Moneycontrol.com

Buy Bajaj Finance; target of Rs 4668: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Bajaj Finance has recommended buy rating on the stock with a target price of Rs 4668 in its research report dated October 22, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Bajaj Finance


Maintaining robust growth trajectory, NII at Rs39.9bn (PLe: Rs38.8bn) grew strong 48% YoY exceeding AUM traction of 38% YoY for Q2FY20. While business seasonality led to sequential decline in customer addition at 1.9mn, such a run-rate still stands higher vis-à-vis historical 1.5mn. BAF's unique customer franchise (now 39mn) backed by existing customer base that formed 70% of incremental acquisition only continues to get better. Such a healthy core book performance translated into robust PPoP at Rs 26.2bn (PLe: Rs 25.1bn) growing 50% YoY/9% QoQ. BAF recorded one-time marginal gains to the tune of Rs10mn arising out of tax adjustments under new regime. Subsequently, PAT at Rs 15.1bn [ PLe Rs13bn] increased 63% YoY/26%QoQ.


Outlook


Consequently, BAF remains poised to deliver 21.0% ROEs/3.5% RoAs by FY22E. We reiterate BUY rating on the stock valuing Co. at 6.6x PABV Sep'21 estimates arriving at price target of Rs 4,668 (earlier Rs4,681).


For all recommendations report, click here


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



Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
First Published on Oct 23, 2019 02:57 pm
Loading...
Follow us on
Available On