Buy Bajaj Finserv; target of Rs 17,800: Sharekhan

Sharekhan's research report on Bajaj Finserv

Consolidated PAT stood at Rs. 1,309 crore, rising ~57% y-o-y, but declining ~3% q-o-q, driven by robust earnings clocked by subsidiary Bajaj Finance. PAT included MTM loss of Rs. 283 crore versus MTM gain of Rs. 25 crore in Q1FY22. Revenue increased by ~14% y-o-y (but fell ~16% q-o-q). Management believes that business conditions improved significantly in Q1FY23. Life insurance subsidiary, BALIC continued to perform better, beating industry growth in individual-rated new business premiums.

Outlook

We maintain a Buy on the stock with a revised SOTP-based PT of Rs. 17,800.