Buy Bajaj Finance, target price Rs 6400: Nuvama Wealth

Nuvama Wealth brokerage has buy call on Bajaj Finance with a target price of Rs 6400.The current market price of Bajaj Finance is Rs 6060.05. Nuvama Wealth brokerage recommended to keep stop loss at Rs 5875.

Bajaj Finance, incorporated in the year 1987, is a Large Cap company (having a market cap of Rs 366402.74 Crore) operating in NBFC sector.

Bajaj Finance key Products/Revenue Segments include Interest, Fees & Commission Income, Other Operating Revenue, Income from Sale of Share & Securities and Service Charges for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 9972.63 Crore, up 7.43 % from last quarter Total Income of Rs 9282.71 Crore and up 28.98 % from last year same quarter Total Income of Rs 7732.06 Crore. Company has reported net profit after tax of Rs 2780.65 Crore in latest quarter.

The company’s top management includes Mr.Sanjiv Bajaj, Mr.Rajeev Jain, Ms.Radhika Haribhakti, Mr.Rajiv Bajaj, Mr.D J Balaji Rao, Dr.Naushad Forbes, Mr.Anami Roy, Mr.Pramit Jhaveri. Company has G M Kapadia & Co. as its auditors. As on 30-09-2022, the company has a total of 61 Crore shares outstanding.

Investment Rationale
After a steep fall, momentum oscillators are turning north. Bajaj Finance seems ripe for a rally towards Rs 6400.

Promoter/FII Holdings
Promoters held 55.86 per cent stake in the company as of 30-Sep-2022, while FIIs owned 21.74 per cent, DIIs 12.06 per cent.