Global brokerages raise target price on Bajaj Finance post Q2 results; sees up to 15% upside

Global brokerage firms such as JPMorgan, Morgan Stanley, and Goldman Sachs maintained their rating but raised their respective target price on Bajaj Finance post September quarter results, according to research collated by Zee Business TV.

Morgan Stanley has the most aggressive target price of Rs 9060 on Bajaj Finance which translates into an upside of over 15 percent from Rs 7849 recorded on 26 October on the BSE.

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Bajaj Finance, eight largest company by market capitalization, reported a 53 per cent YoY rise in the consolidated profit at Rs 1,481 crore for the quarter ended September 30, 2021.

It has posted a profit of Rs 965 crore in the year-ago quarter. The Net Interest Income (NII) grew by 28 per cent to Rs 5,335 crore as against Rs 4,162 crore posted last year.

The company said its Stage 3 gross assets stand at 2.45 per cent in the period under consideration against 2.96 per cent posted in the previous quarter ended June 30, 2021.

The net non-performing assets (NNPA) came in at 1.1% as against 1.46% posted in the previous quarter. The company said its assets under management (AUM) grew by 21.74% YoY and 5% QoQ to Rs 1,66,900 crore as of September 30, 2021.

Here’s what brokerages recommend post September quarter results:

JP Morgan: Neutral| Target raised to Rs 6800 from Rs 6000

JPMorgan maintained its neutral rating on Bajaj Finance post September quarter results but raised its target price to Rs 6800 from 6000 earlier.

The asset quality has improved, and the credit cost guidance is maintained which is a positive sign. The loan growth has picked up and the outlook is equally encouraging which bodes well for the counter.

Morgan Stanley: Overweight| Target raised to Rs 9060 from Rs 6850

Morgan Stanley maintained its overweight rating on Bajaj Finance post Q2 results but raised its target price to Rs 9060 from Rs 6850 earlier.

The earnings momentum is set to pick up significantly BAF has three P's – profits, platform, & payments – that excite investors in "new age"

The stock valuation is not cheap, but it seldom pauses against such a backdrop.

Goldman Sachs: Sell| Target raised to Rs 4578 from Rs 4423

Goldman Sachs maintained its sell rating on Bajaj Finance post Q2 results but raised its 12-month target price to Rs 4578 from Rs 4423 earlier.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)