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Buy Bajaj Finance; target of Rs 8500: ICICI Direct

ICICI Direct is bullish on Bajaj Finance has recommended buy rating on the stock with a target price of Rs 8500 in its research report dated July 28, 2022.

July 29, 2022 / 06:59 PM IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

 
 
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ICICI Direct's research report on Bajaj Finance


Bajaj Finance with its digital transformation is quickly moving from just consumer finance to multiple segments and harnessing it large franchise base digitally. Housing has grown to a significant size. AUM (₹204018 crore) mix as of June 30, 2022 – Consumer: Rural: SME: Commercial: Mortgage at 44%:14%:18%:15%:9%. Bajaj Finance maintained strong operating metrics over various credit and rate cycles leading to >18% RoE and > 4% RoA.


Outlook


The core business has got potential and is well on track to get transformed into an adaptable new age fin-tech. No plans to convert to a bank on immediate basis. However, with recent valuation reset across financials led us to revise our TP to ₹ 8500 from Rs 9500 valuing at 7.5x FY24E ABV.


For all recommendations report, click here

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Bajaj Finance - 280722 - icici

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first published: Jul 29, 2022 06:59 pm
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