Buy Bajaj Finserv; target of Rs 2350: Sharekhan

Sharekhan's research report on Bajaj Finserv

The lending business (BAF) is consistently outpacing industry growth, while maintaining impressive profitability metrics. The general insurance business (BAGIC) is also demonstrating healthy profitable growth amid intense competition, while the life Insurance business (BALIC) is navigating through current regulatory changes with some near-term impact on profitability. We believe the group is well positioned to capture the structural growth story across the financial landscape (lending, investing, and protecting) in India over the medium to long term.

Outlook

We maintain a Buy rating on Bajaj Finserv, with a revised SOTP-based PT of Rs. 2,350 factoring the upside in valuations of its key subsidiaries.

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