Bajaj Finance- Jeffries sees 18% upside potential; recommends Buy at Rs 8830
时间:2024-06-26 17:42:13 阅读(143)
Jeffries recommends ‘Buy’ for the Bajaj Finance stock with an 18% upside target of Rs 8,830. The share price surged nearly 5% during the intra-day trade on Monday following the company’s announcement to raise funds. According to the information available on the NSE, BAF’s board will consider capital raising via pref issue and/or QIP on October 5.
“While it is well capitalised with a tier-1 CAR of 23%, this raise may be upfronting of capital to support strong AUM growth (32% in 1Q) & is reasonably ahead of time. Assuming BAF raises 10-15% of net worth, issue size may be Rs 80 billion/$1 billion. This would lead to dilution of 2% whereas FY24E EPS & BVPS may rise 6% and 11%; RoE may see slight fall to 22%. BAF stays among our top NBFC picks,” said Jefferies in its report.
The report stated that, “our target price of Rs 8,830 is based on SoTP valuation. Standalone entity is valued at 6.5x Jun-25E P/BV. Key risks to our valuation: slowdown in growth, higher-than-expected NIM compression, or asset quality deterioration. Upside can arise from stronger than expected growth in consumer durable and rural financing business, and further improvement in operating efficiencies and reduction in cost ratios.”
猜你喜欢
- Adani Group, Ambuja Cement, Yes Bank, IndusInd Bank, Dilip Buildcon, Zydus, JSW Steel stocks in focus
- Adani Enterprises, Adani Power, Adani Wilmar, TCS, Zee, M&M, SAIL stocks in focus
- Adani Enterprises, NDTV, Tata Motors, TCS, Future Retail, NTPC, Spicejet, Chennai Petroleum stocks in focus
- Sebi looking to mandate FPIs to use RFQ platform for 10 per cent of secondary transactions
- 52-week high, 52-week low- Reliance, Adani Power among 123 BSE stocks at new highs; Future Retail at new low
- 3
- 90% of generative AI pilot projects may not make it to production in 2024
- 5 big numbers from OYO’s renewed IPO filing; Rs 2140 cr loss in FY22, check other details
- Adani Enterprises, SBI, HDFC AMC, Apollo Tyres, ITC, Ambuja Cement, Paytm, Berger Paints stocks in focus