Moneycontrol PRO
UPCOMING EVENT:Watch India’s Best Managed Companies 2021, Deloitte’s global marquee programme for private companies on 17th Sept, 12 pm. Register Now!

Buy Bajaj Finance; target of Rs 6900: Motilal Oswal

Motilal Oswal is bullish on Bajaj Finance recommended buy rating on the stock with a target price of Rs 6900 in its research report dated july 11, 2021.

July 12, 2021 / 04:42 PM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Bajaj Finance

Bajaj Finance (BAF)’s Annual Report shares a glimpse of the management’s two-pronged strategy implemented in FY21: a) conservatism and prudence and b) the acceleration of the business transformation plan. With the various steps taken during the pandemic, BAF is confident of achieving higher volumes, a leaner cost structure, and a strong digital platform offering superior services across the value chain. The focus throughout the year was on (a) capital management (Tier I of 25%+), (b) achieving abundant liquidity (12–13% of borrowings), (c) lowering opex (opex to assets down 70bp), (d) expanding collections and servicing capabilities (costs up 18% YoY), (e) strengthening underwriting, and (f) gaining a sharp perspective on risk mgmt. Furthermore, the management has made the best out of the crisis and accelerated the digitalization process across the board. We believe the near-term stress due to COVID would be transient in nature, and BAF has strong pillars in place to capitalize on recovery. ROEs are likely to be healthy at ~20% despite the pressure on earnings. Reiterate Buy.


BAF’s return ratios have not only been consistent but are also the highest in our Coverage Universe (after that of gold financiers). Reiterate Buy, with revised TP of INR6,900 (7x BV 1HFY24).

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 12, 2021 04:42 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark