Buy Bajaj Finserv, target price Rs 20,200: ICICI Direct

ICICI Direct has buy call on Bajaj Finserv with a target price of Rs 20,200. The current market price of Bajaj Finserv Ltd. is Rs 18532.25.

Time period given by analyst is one year when Bajaj Finserv Ltd. price can reach defined target.

Bajaj Finserv Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 284322.91 Crore) operating in NBFC sector.


Bajaj Finserv Ltd. key Products/Revenue Segments include Dividend, Interest, Power Generation, Income From Sale Of Share & Securities, Renewable Energy Certificates and Rental Income for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 13949.45 Crore, down -9.34 % from last quarter Total Income of Rs 15387.25 Crore and down -1.71 % from last year same quarter Total Income of Rs 14192.01 Crore. Company reported net profit after tax of Rs 1432.83 Crore in latest quarter.

Investment Rationale
Bajaj Finserv’s share price has grown by ~6x over the past five years (from ~Rs 2900 in September 2016 to Rs 17500 in September 2021). The brokerage upgrades rating on the stock from HOLD to BUY. It values Finserv at ~45x FY23 EPS to arrive at revised TP of Rs 20200 per share from Rs 13500 earlier.

Promoter/FII Holdings
Promoters held 60.8 per cent stake in the company as of June 30, 2021, while FIIs held 9.6 per cent, DIIs 6 per cent and public and others 23.7 per cent.