Sharekhan's research report on Bajaj Holdings and Investment
Q1FY20 PAT declines 6% yoy to Rs 670 cr on the back of a slight drop in share of profit from associates. Associate Bajaj Finserv’s (BFS) lending business is on a strong footing, While the insurance subsidiaries are expected to continue with healthy operating matrices and profitability. Associate Bajaj Auto’s (BAL) volumes are likely to be under pressure due to sustained headwinds; OPM’s are expected to decline leading to a drop in earnings in FY2020. Stock Price of BFS has moved up sharply by ~ 21% in the past three months, which contributes around 55% of BHIL’s valuations.
Outlook
We retain Buy on Bajaj Holdings & Investment Limited (BHIL) with a revised PT of Rs 4,150 (earlier PT of Rs 4,548).
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