Buy Bajaj Finserv; target of Rs 1850: KR Choksey

KR Choksey is bullish on Bajaj Finserv has recommended buy rating on the stock with a target price of Rs 1850 in its research report dated August 09, 2023.

Broker Research

August 14, 2023 / 20:05 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on Bajaj Finserv

Bajaj Finserv reported a consolidated profit of INR 19,426 Mn, a growth of 48.4% YoY (+9.8% QoQ). The consolidated revenues stood at INR 2,32,800 Mn, an increase of 46.5% YoY (-1.5% QoQ). Bajaj Finance’s total income for Q1FY24 grew by 35% at INR 1,25,010 Mn as against INR 92,860 Mn in Q1FY23. Profit after tax for Q1FY24 reported a growth of 32% YoY at INR 34,370 Mn. BAGIC’s Gross written premium for Q1FY24 grew by 23% YoY at INR 38,340 Mn. Excluding tender-driven crop and government health insurance premium, BAGIC's gross written premium increased by 27% YoY. Profit after tax for Q1FY24 stood at INR 4,150 Mn as against INR 4,110 Mn in Q1FY23. BALIC’s Gross written premium for Q1FY24 was INR 40,580 Mn as against INR 43,690 Mn in Q1FY23. Shareholders' profit after tax during Q1FY24 stood at INR 1,550 Mn as against INR 1,240 Mn in Q4FY22, a growth of 25% YoY.

Outlook

We have used the SoTP approach to arrive at a target of INR 1,850 per share (previously INR 1,700 per share); (2.5x P/EV for BALIC on FY25E EVPS; 2.0x P/B for BAGIC on FY25E; and 6.2x P/ABV on FY25E for BAF); indicating an upside potential of 24.0% over CMP. Accordingly, we maintain our “BUY” rating on the shares of Bajaj Finserv Ltd.

For all recommendations report, click here