Sharekhan's research report on Bajaj Finserv
Its lending arm, Bajaj Finance Limited (BFL) is a dominant player in retail lending with a large customer franchise of 60.3 million customers. Healthy momentum in customer acquisition and strong cross-selling ability (34.7 mn) would likely support its business growth. BFL expects to double its AUM by FY2025. Its insurance subsidiaries, BALIC and BAGIC are performing well, with strong GWP growth, NBP traction in BALIC with focus on better product mix, and robust underwriting in BAGIC, reflected in healthy combined ratios, all of which is likely to bode well for the company. Healthy traction in all businesses is expected to drive strong earnings growth going ahead.
We maintain our Buy rating on the stock with a revised SOTP-based PT of Rs. 1,950. We believe Bajaj Finserv is an attractive play in the expanding consumer finance space along with capturing value in both life and general insurance businesses.
At 17:30 Bajaj Finserv was quoting at Rs 1,678.60, up Rs 43.00, or 2.63 percent.
It has touched an intraday high of Rs 1,698.75 and an intraday low of Rs 1,620.95.
It was trading with volumes of 90,795 shares, compared to its thirty day average of 254,080 shares, a decrease of -64.27 percent.
In the previous trading session, the share closed down 0.94 percent or Rs 15.45 at Rs 1,635.60.
The share touched its 52-week high Rs 1,932.00 and 52-week low Rs 1,077.70 on 19 October, 2021 and 01 July, 2022, respectively.
Currently, it is trading 13.12 percent below its 52-week high and 55.76 percent above its 52-week low.
Market capitalisation stands at Rs 267,368.96 crore.
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