Buy Bajaj Finserv, target price Rs 11,850: JM Financial

JM Financial has buy call on Bajaj Finserv with a target price of Rs 11,850. The current market price of Bajaj Finserv Ltd. is Rs 9301.25.

Bajaj Finserv Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 146852.03 Crore) operating in NBFC sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 15958.53 Crore, up 6.04 % from last quarter Sales of Rs 15049.58 Crore and up 9.61 % from last year same quarter Sales of Rs 14558.92 Crore Company reported net profit after tax of Rs 2081.87 Crore in latest quarter.


Investment Rationale
The brokerage values Bajaj Finserv using SOTP. It assigns Rs 878/ share for life sub, Rs 2,451/ share for general sub and Rs 9,837/ share for Bajaj Finserv's c.53% stake in BAF. It factors a 10% holdco discount, which is in-line with the applied discount for HDFC.