Bajaj Finance Outlook: In the third quarter of the current financial year, October-December 2021, the share price of Bajaj Finance has strengthened by more than 3.5 percent today on the basis of more spectacular results than estimates.
Bajaj Finance Outlook: The share price of Bajaj Finance has strengthened by more than 3.5 per cent today on the back of more spectacular results than the estimates in the third quarter October-December 2021 of the current financial year. The company announced its December quarter results on Tuesday. According to this, the profit of the company increased by 85.5 percent year-on-year to Rs 2125 crore. At the same time, the interest income also increased by 40 percent to Rs 4296 crore.
On the basis of excellent results, its prices on the BSE today reached a 52-week high of Rs 8043 per share. Market experts believe that the company’s business has reached pre-Corona levels in terms of customer acquisition and new loans and may reach new highs in the coming quarters. There is a mixed opinion of brokerage firms regarding investment in this.
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ICICI Direct: BUY
Target price: Rs 9,500
The prices of consumer finance sector giant Bajaj Finance had gained 64 per cent last year. According to brokerage firm ICICI Direct, Bajaj Finance shows good growth prospects and is on the right track to adopt the new era of fintech. The brokerage firm has given it a buy rating and has set a target price of Rs 9500.
Motilal Oswal: BUY
Target price: Rs 9,080
According to brokerage firm Motilal Oswal, Bajaj Finance has outperformed on all key business parameters and if the current wave of Corona does not have a negative impact, then the company can achieve AUM (Asset Under Management) growth of 26 percent in FY 2022. And after that the business can expand with a CAGR (Compound Annual Growth Rate) of 25 percent. Motilal Oswal has given it a buy rating at a target price of Rs 9080 on the basis of projections of strength in asset quality and progress in digital transformation program in the second half of FY 2022, October-March 2022.
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Morgan Stanley: OVERWEIGHT
Target price: Rs 9,060
Morgan Stanley has cut Bajaj Finance’s earnings estimates by 4 per cent for the current financial year on account of higher provisioning estimates. However, the brokerage firm has not made any change in the earnings estimates for the next two financial years. According to foreign brokerage firm Morgan Stanley, its valuation is not cheap but its earnings may increase. The foreign brokerage firm has kept its target price at Rs 9060.
Axis Securities: Hold
Target Price: Rs 8,190
According to Axis Securities, the AUM grew by 9 per cent on a quarterly basis due to festive demand, due to which the company performed well in the December 2021 quarter. The company’s net profit (profit after tax) also grew by 44 per cent on a quarterly basis. Despite price competition, the mortgage segment grew at 8 per cent quarter-on-quarter, non-interest income at 22 per cent and is expected to grow further. In view of this, Axis Securities has advised investors to hold its shares at a price of Rs 8190.
Securities Box: SELL
Fair Value: Rs 6,350
According to Kotak Securities, the growth of Bajaj Finance may remain strong in the medium term despite increasing competition among various segments, rising rates and investment pressures in new options. However, Kotak Securities has retained its rating on sale. According to the brokerage firm, Bajaj’s management ability is better, but the effect of slowdown in digital transformation can be seen on the stock price.
Nirmal Bang: ACCUMULATE
Target price: Rs 7,982
Considering the company’s recent growth in distribution reach, product offerings and new business acquisitions, Nirmal Bang believes that the company’s AUM growth is going to be strong in the times to come. Bajaj Finance has been able to maintain margins despite the increasing competition. According to the brokerage firm, despite the increase in provision, the earnings growth of the company is expected to pick up. In view of this, the brokerage has upgraded the rating of Bajaj Finance and has fixed a target price of Rs 7982.
(Harshita Tyagi)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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