Bajaj Finance | Buy Bajaj Finance, target price Rs 5865: Motilal Oswal

Motilal Oswal has a buy call on Bajaj Finance with a target price of Rs 5865. The current market price of Bajaj Finance is Rs 5121.35.

Bajaj Finance Ltd, incorporated in the year 1987, is a Large Cap company with a market cap of Rs 293161.75 Crore, operating in NBFC sector.

Bajaj Finance Ltd’s key Products/Revenue Segments include Interest, Fees & Commission Income, Income From Sale Of Share & Securities, Income From Financial Services and Service Charges for the year ending 31-Mar-2020.

Stock Score, Analysts’ Ratings & Recommendations

EARNINGS

FUNDAMENTAL

RELATIVE VALUATION

RISK

PRICE MOMENTUM

Stock score of Bajaj Finance Ltd moved up by 1 in 3 months on a 10-point scale.

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Stock Analysis

Stock score of Bajaj Finance Ltd is 5 on a scale of 10. View Stock Analysis »


Investment Rationale

In the near term, Motilal Oswal does not foresee any major asset quality disruption, unless the impact of the second wave is worse than expected. Margins are likely to see a sharp improvement in FY22 on: a) lower cost of funds, b) a reduction in liquidity, and c) a favorable base due to interest reversals. Motilal Oswal largely keeps its estimates unchanged and expect the company to deliver ~4.8 per cent RoA / 22 per cent RoE over the medium term.

Financials
For the quarter ended 31-12-2020, the company has reported a Consolidated Total Income of Rs 6658.47 Crore, up 2.07 per cent from last quarter’s Total Income of Rs 6523.29 Crore and down 5.23 per cent from last year same quarter’s Total Income of Rs 7025.93 Crore. Company has reported net profit after tax of Rs 1145.98 Crore in Dec quarter.

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