Brokerages increased the target price on Bajaj Finance after January-March quarter earnings. Q4 net profit came in at Rs 1,176 crore for the quarter ended March 2019, an increase of 57 percent from last year. Credit Suisse maintained 'underperform', while JP Morgan and Jefferies remained bullish on the stock.

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The non-banking financial company (NBFC) posted a net interest income (NII) of Rs 3,395 crore in Q4FY19, up 50 percent YoY.

Jefferies gave a 'buy' rating and increased the target price to Rs 3,600 from Rs 3,100 per share. The research firm said that the Q4 profit beats estimates due to stronger NIMs (net interest margins). Asset quality remained stable after strong growth in new customers. The brokerage expects solid earnings growth and returns to support premium valuations

Morgan Stanley rated the stock 'equal-weight' and raised the target price to Rs 2,950 from Rs 2,600 per share.

"In a tough environment, the company continued to grow its AUM (Assets under management) by over 40 percent. Equalweight call is for the steep valuations", said the brokerage.

Meanwhile, Credit Suisse remained bearish on the stock by maintaining an 'underperform' rating with target price raised to Rs 1,930 from Rs 1,660 per share.

The research house maintains its bearish rating due to its premium multiples which may not sustain, and leverage levels which are still benign for most loan segments. However, it said, "EPS goes up by 4-6 percent as we factor in Q4 results."

First Published:May 17, 2019 11:22 AM IST