Bajaj Finance: HSBC starts coverage with 'buy' rating

Reuters | Updated on November 20, 2018 Published on November 20, 2018

FILE PHOTO   -  Reuters

HSBC initiates coverage on non-banking financial company Bajaj Finance Ltd at target price of Rs 3,000 and a 'buy' rating

HSBC said in its rating report that the bank management has demonstrated its execution capability, making it as one of the fastest-growing and most profitable banking, financial services and insurance (BFSI) companies in India, with a valuation premium to peers

The stock has a PE ratio of 30.46 for the next 12 months, highest among its peers, according to Refinitiv data.

HSBC analysts said that Bajaj Finance gets benefited from network effect of complementary payments and e-commerce, giving it a growing customer franchise.

The company’s stable asset quality comes from having repeat customers accounting for 60 per cent of its consumer business

Some 14 of 23 brokerages covering the stock rate it “buy” or higher, nine rate as “hold” and three “sell”; their median Price Target is Rs 2,473 rupees - Refinitiv data

The stock rises as much as 1.4 per cent to Rs 2,392.50.

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Published on November 20, 2018
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