"We believe Bajaj Finserv is an attractive play on long term structural theme of financialiasation of savings in the economy," says Sumit Bilgaiyan of Equity99.
Sumit Bilgaiyan
Bajaj Finserv reported strong results for Q4FY2018 on back of healthy performance across all its businesses. On a consolidated basis, total income from operations increased by 25.4 percent YoY and net profit increased by 28.1 percent YoY.
Bajaj Finance the lending subsidiary has also posted strong operating performance for Q4FY2018. Bajaj Alliance General Insurance reported strong performance as gross written premium (GWP) increased by 22.3 percent YoY and net earned premium increased by 26.9 YoY.
In Bajaj Allianz Life Insurance, GWP reported decent growth of 18.8 percent YoY, with the rated individual business growing by 22.8 percent YoY to Rs 474 crore.
We believe Bajaj Finserv is an attractive play on long term structural theme of financialiasation of savings in the economy. It is a holding company and its Bajaj Finance and Bajaj Alliance General Insurance are displaying healthy performance.
Bajaj Alliance General Insurance continues to demonstrate underwriting strength and ability to balance business growth with profitability. Bajaj Allianz Life Insurance is focused on strengthening the life insurance distribution channel, which would help the company to maintain or improve its business momentum going forward and has seen improvingpersistency and healthy solvency which is a positive for valuations. We have a buy rating on Bajaj Finserv.
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