Bajaj Finserv Ltd. share price target

Strong Insurance Performance; Lending Arm Equipped to Withstand COVID-19 Shock: In Q4FY20, Bajaj FinServ reported consolidated PAT of Rs. 1.9 Bn, down 77% YoY owing to the following COVID19 related impacts

Stong Insurance Performance; Lending Arm Equipped toWithstand COVID-19 Shock: In Q4FY20, Bajaj FinServ reported consol PAT of Rs. 1.9 Bn, down 77% YoY owing to the following COVID19 related impacts, a) MTM losses on BAGIC & BALIC investments of Rs. 7.7 Bn and b) contingency provision of Rs. 9.0 Bn made by lending arm, Bajaj Finance (BAF).

Bajaj Finance's profit after tax (PAT) for Q4 FY20 stood at Rs 948 crore in Q4 March 2020, down by 19.38% from Rs 1,176 crore in Q4 March 2019. It has made a pre-tax provision of Rs 900 crore in the form of contingency provision on account of the impact of COVID-19....

In general insurance, gross written premium (GWP) accretion declined 22% YoY to | 2655 crore, primarily led by lower crop insurance business. GWP, excluding crop insurance, declined ~4% YoY to | 2414 crore. Claim ratio came lower at 62.1% vs. 75.5% in Q4FY19, largely due to lower crop claims. Accordingly, combined ratio improved to 93.8% in Q4FY20 vs 103.9% in Q4FY19. Thus, underwriting profit jumped to | 159 crore. Investment income remained healthy at | 255 crore. In Q4FY20, BAGIC recognized | 53 crore of impairment related to stressed bonds (total provision in FY20 at |...

Improvement in Underwriting Performance of Life Insurance, Strong Deposits and Existing Customer Franchise LoanGrowth Spurred the Momentum

Bajaj Finserv reported 32.3% jump in consolidated net profit to Rs 1,125.64 crore on a 30.7% surge in total income to Rs 14,560.74 crore in Q3 December 2019 over Q3 December 2018. Consolidated profit before tax soared 18.1% to Rs 2,627.16 crore in Q3 December 2019 as against Rs 2,224.02 crore in Q3 December 2018, aided by 19.18% reduction in tax expense as they fell to Rs 649.11 crore paid during this quarter as compared to Rs 803.22 crore paid in the...

Bajaj Finserv reported 32.3% jump in consolidated net profit to Rs 1,125.64 crore on a 30.7% surge in total income to Rs 14,560.74 crore in Q3 December 2019 over Q3 December 2018. Consolidated profit before tax soared 18.1% to Rs 2,627.16 crore in Q3 December 2019 as against Rs 2,224.02 crore in Q3 December 2018, aided by 19.18% reduction in tax expense as they fell to Rs 649.11 crore paid during this quarter as compared to Rs 803.22 crore paid in the...

Bajaj Finserv delivered a healthy performance in terms of topline across segments. The only hit was a higher claim in the general insurance business, which was partly offset by higher investment income. Strong business model reporting underwriting profit with <100% combined ratio & extensive retail focus, enables general insurance segment to report RoE>24%. Premium accretion in general insurance remained healthy with growth at 20% YoY to | 3055 crore, primarily led by crop insurance. Excluding crop insurance, premium growth was at 10% YoY to | 2663 crore....

group. It serves millions of customers by providing solutions for asset acquisition through financing, asset protection through general insurance, family and income protection in the form of life and health insurance and retirement and savings solutions. More specifically, the areas of business are Lending and Protection and Savings. Bajaj Finserv has three key financial sector businesses: (i) lending Sector Outlook through Bajaj Finance Ltd. (BFL), (ii) general insurance, under Bajaj Allianz General Insurance Com- Stock...

We view Bajaj Finserv (BFIN) as a play on fast growing consumer finance, and the high growth potential/underpenetrated insurance business in India. Its three subsidiaries, namely the lending arm of Bajaj Finance (BAF), and the insurance subsidiaries are strong domain leaders in their...