BAJAJ FINANCE Rating
CITI ON BAJAJ FINANCE : 07.06.2021
* Maintain BUY, Target at Rs 5800/share
* Lowering AUM growth guidance for FY22
* Expect higher GNPA in H1; raising credit cost guidance
* Bajaj has taken steps to reduce opex and cost of funds
CITI ON BAJAJ FINANCE 07.06.2021
* MAINTAIN BUY TARGET: 5,800
* Citi maintains its Buy stance on Bajaj Finance, but target is lower than the CMP.
* Co Expects Slower Growth & Higher Provisions
* Factoring In 23% YoY AUM Growth & 2.3% Credit Cost For FY22
• Expect 2%/2.2% Gross NPA In Q1/Q2
* Co Has Taken Steps To Reduce Opex & Cost Of Funds
JPMORGAN ON BAJAJ FINANCE : 07.06.2021
* MAINTAIN NEUTRAL TARGET: 5,100
* JPMorgan has a Neutral call on Bajaj Fin. It believes, company can make up for lost growth, in H2FY22
• 3% Cut To Growth & 80 bps Higher Credit Costs
* Mid-Qtr Update Quantifies Second Wave Impact
• Guidance Is Based On Resumption Of Normal Activity By July
* Guidance Does Not Factor In A Risk Of Prolonged Lockdowns
* Update Highlights That Eco Impact Of 2nd Wave Is Contained
* Co, In Our View, Can Make Up For Lost Growth In H2
MS ON BAJAJ FINANCE
* MS maintains Overweight call on Bajaj Fin, but expects stock to be weak in the near term
* MAINTAIN OVERWEIGHT TARGET: 6,000
* Cut EPS Estimates By 12%/4%/6% For FY22/FY23/FY24
* Expected Some Risk To Earnings, But Rise In Credit Cost Guidance Is Much Sharper
* Stock Is More Likely To Be Weak In The Near Term
