HDFC Securities: Bajaj Finance - Long Term Story Intact Despite FY21 Glitch

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Report.Bajaj Finance Ltd. is one of the largest non banking financial companies and perhaps the most diversified one in the country. It has consistently delivered strong performance across fronts.Over FY13-20, its assets under management (AUM) grew at a compound annual growth rate of approximately 35%, return on asset equities averaged approximately 19.6%, and gross non-performing assets did not exceed 1.7%.However, its near-term performance is likely to be a stark contrast to that seen in recent times due to the overarching impact of Covid-19. FY21E is likely to be an aberration in terms of growth, asset quality, and return ratios, but we expect a significant recovery in FY22E.While our near-term outlook may seem lack lustre, we believe that Bajaj Finance's long-term prospects remain reasonably intact, despite Covid-19.Further, we believe that current valuations do not adequately price in Bajaj Finance's potential to sustainably deliver superior return ratios in the long term. This underpins our positive stance..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: Bajaj Finance - Long Term Story Intact Despite FY21 Glitch

HDFC Securities: Bajaj Finance - Long Term Story Intact Despite FY21 Glitch

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