Bajaj Finance is trading at a significant discount to historical average valuations and offers favorable risk reward from current levels.
Angel Broking has given an accumulate rating to Bajaj Finance with a target price of Rs 3,000. The share price moved up by 3.82% from its previous close of Rs 2840.30. The stock’s last traded price is Rs 2948.85. Bajaj Finance Limited is one of the leading non-banking financial companies (NBFC) in India. It is engaged in lending across retail, SMEs, commercial customers and accepts public and corporate deposits. Investment Rationale
According to the brokerage, Bajaj Finance is trading at a significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds. Key risk to the brokerage call would be the rapid spread of Covid 19 in India in which case it might have to re-evaluate its investment rationale.
Quarterly Results
Source: ET.Com
Financials
For the quarter ended March 31, 2020, the company reported consolidated sales of Rs 7190.93 crore, up 2.57 per cent from last quarter sales of Rs 7011.05 crore and up 35.48 per cent from last year's same quarter sales of Rs 5307.66 crore. The company has reported net profit after tax of Rs 948.10 crore in the latest quarter
Promoter/FII Holdings
Promoters held 56.19 per cent stake in the company as of March 31, 2020, while FIIs held 21.16 per cent, DIIs 10.09 and public and others 11.75 per cent.
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