Bajaj Finance Ltd. share price target

PAT was up 53% YoY and 48% QoQ to INR14.8b (8% miss) in 2QFY22. While NII at INR42.9b (10% beat) was up 26% YoY due to higher interest income from surplus liquidity and from IPO financing, it was mitigated by higher OPEX (up 48% QoQ and 40% above our estimate). Credit costs stood at INR13b (est. INR11b), which included additional COVID-19 provisions of INR3.5b in 2QFY22 to guard against contingencies from a potential third wave. GNPL ratio/PCR improved by ~50bp/~400bp QoQ to 2.45%/55%. The...

We revise our rating to HOLD from SELL with a revised target price of Rs 7,500.

What should investors do? Bajaj Finance's share price has grown by ~7.2x over the past five years (from ~| 1100 levels in September 2016 to ~| 7800 levels in September 2021). Factoring in management agility towards product development...

BAF's return ratios have been consistent and also the highest in our Coverage Universe (excluding gold Financiers). Given the strong recovery post relaxation of the lockdowns and the healthy progress made in its digital transformation program (including wallets and payments), we reiterate our Buy rating, with a TP of INR7,700 per share (8x 1HFY24E BV)....

Impact of the pandemic lingers on, but the rising AUM, declining OpEx and growing deposits provide hope for improvements in asset quality, that in turn should lay the foundation for further growth. At current price levels however, we see limited upside potential and thereby...

We maintain a SELL on the stock with a target of Rs 4,300/share (5x FY23E ABV).

Bajaj Finance (BAF)'s 1QFY22 PAT was up 4% YoY / down 26% QoQ to ~INR10b (27% miss). While NII at INR37b (5% miss) was up 12% YoY, opex was largely in-line. Provisions came in at INR17.5b v/s our estimate of INR15b. The company aggressively wrote off ~INR9.2b...

Bajaj Finance maintained strong operating metrics over various credit and rate cycles leading to >18% RoE and >3% RoA consistently Q1FY22 Results: Bajaj Finance reported lower-than-expected earnings led by...

Bajaj Finance (BAF)'s Annual Report shares a glimpse of the management's two-pronged strategy implemented in FY21: a) conservatism and prudence and b) the acceleration of the business transformation plan. With the various steps taken during the pandemic, BAF is confident of achieving higher volumes, a leaner cost structure, and a strong digital platform offering superior services across the value chain. The focus throughout the year was on (a) capital management (Tier I of 25%+), (b) achieving abundant liquidity (1213% of borrowings), (c) lowering opex (opex to assets down 70bp), (d) expanding...

We maintain our Sell rating with a target price of Rs 4300/share (5x FY23E ABV) from Rs 4350/share earlier.