Hold Bajaj Finance, target price Rs 2950: Emkay Global

Emkay Global has given a hold rating to Bajaj Finance with a target price of Rs 2950. The share price moved down by 3.93 per cent from its previous close of Rs 3474.40. The stock’s last traded price is Rs 3337.90.

Bajaj Finance Ltd., incorporated in the year 1987, is a Large Cap company (having a market cap of Rs 200932.71 Crore) operating in NBFC sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 6634.93 Crore, down 7.73 % from last quarter Sales of Rs 7190.93 Crore and up 14.37 % from last year same quarter Sales of Rs 5801.25 Crore Company reported net profit after tax of Rs 962.32 Crore in latest quarter.

Investment Rationale
The brokerage awaits clarity on the asset quality after the completion of the moratorium. Management commentary on the future growth strategy also remains key monitorable from the results. It maintains Hold on the stock with a TP of Rs 2,950, corresponding to ~3.5x P/B Sept’22E.

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.