Bonanza is bullish on Bajaj Finance has recommended buy rating on the stock with a target price of Rs 2019 in its research report dated March 07, 2018.
Bonanza's research report on Bajaj Finance
The stock price of Bajaj Finance Ltd. (Bajaj Finance) corrected by ~17% from 52-week high of Rs.1,986 despite reporting good set of numbers in the recent quarters.Bajaj Finance has a diversified loan portfolio and a leadership position in under penetrated and growing segments like consumer durables (CD) financing, lifestyle product financing, two-wheeler financing, LAP, etc.,which account for its ~50% of its portfolio.
Outlook
Well diversified borrowings, strong asset quality and margins to stay at healthy levels, we value Bajaj Finance at 8.75x FY19E ABV of Rs.230.80 to arrive at target price of Rs.2,019, an upside of ~24%.For all recommendations report, click here
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