Buy Bajaj Finserv: target of Rs 20264: Sharekhan

Sharekhan's research report on Bajaj Finserv

Bajaj Finserv (BFS) reported consolidated PAT of Rs. 1,346 crore, an increase of ~38% y-o-y, aided by strong revenue from operations. For FY2022, PAT grew by 2% y-o-y to Rs. 4,557 crore. Revenue grew strong by ~23% y-o-y in Q4FY2022. It was primarily aided by strong growth in lending business and robust performance in life premium offtake. Management opined that business conditions improved significantly in Q4FY2022. However, lower sales of automobiles due to supply chain problems affected the general insurance business, but overall business environment was conducive and all businesses performed well.

Outlook

We maintain our Buy rating on the stock with an unchanged SOTP-based PT of Rs. 20,264.

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