Buy Bajaj Finance, target price Rs 7540: IIFL Securities

IIFL Securities recommends a "buy" rating for Bajaj Finance at its current market value of Rs 7387.95. According to the brokerage, a target price of Rs 7540 for Bajaj Finance is justified. This implies a potential upside of approximately 2%. The recommendation is based on the company's strong fundamentals, solid earnings growth, and a robust asset quality. Bajaj Finance is expected to benefit from the growth in the consumer finance sector and its ability to penetrate new markets.

About Bajaj Finance:

Bajaj Finance is a non-banking financial company (NBFC) headquartered in Pune, India. It is a part of the Bajaj Group, one of India's largest and most diversified business conglomerates. Bajaj Finance offers a wide range of financial products and services, including loans, investments, and insurance. The company has a strong presence across India, with over 2,500 branches and over 100,000 employees. Bajaj Finance is listed on the National Stock Exchange (NSE) of India and is a constituent of the Nifty 50 index.

52 Week Price Trend:

Bajaj Finance is currently trading at Rs 7387.95, significantly below its 52-week high of Rs 8192. This represents a potential upside of around 10%. However, it is important to note that the stock has also fallen by over 19% from its recent all-time high of Rs 9141.90 reached in June 2022. Given the company's strong fundamentals and long-term growth prospects, investors may consider this as an opportunity to accumulate the stock at a discount. Nonetheless, it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.

Stratzy's MOST Analysis:

BAJFINANCE has been rated AA by Stratzy's MOST Framework. This indicates that the company has low fundamental risks and a strong financial position. The rating is based on an assessment of the company's management, outlook, safety, and trend. BAJFINANCE has a strong management team with a proven track record of success. The company has a positive outlook for growth and is well-positioned to capitalize on opportunities in the financial services sector. BAJFINANCE has a solid safety record and has implemented strong risk management practices. The company has a positive trend in terms of financial performance and is expected to continue to grow in the future.

Company's Fundamentals:

Bajaj Finance (NSE: BAJAJFINSERV) is currently trading with a Stock PE of 29.78, indicating that investors are willing to pay 29.78 times the company's earnings per share. Its PB Ratio of 6.86 suggests that the market value of its assets is 6.86 times its book value. Despite its relatively high valuations, Bajaj Finance offers a modest Dividend Yield of 0.45%, which may appeal to income-oriented investors. These metrics provide insights into the company's financial health, valuation, and income potential for investors.

Fundamental and Technical information provided in this blog were last updated on 24 Apr, 2024

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