Buy Bajaj Holdings & Investment Stock for a target price of Rs. 7615: Sharekhan


Bajaj Holdings & Investment Ltd (BHIL) Outlook

The Reserve Bank of India has registered Bajaj Holdings & Investment Ltd. as a non-banking financial institution – an investment and credit company. The company operates as an investment company and holds a stake of more than 30% in major bajaj companies Bajaj Finserv Ltd and Bajaj Auto Ltd.

It is a large cap company with a market capitalization of Rs. 72,445 Crores with a current market price of Rs. 6,510. Sharekhan brokerage suggests that it has the potential to hit the target price of Rs. 7615.

Bajaj Holdings & Investment Ltd Valuation Outlook

Bajaj Holdings & Investment Ltd Valuation Outlook

According to Sharekhan’s latest report, “BHIL’s business depends on the valuation of its investments, including that of its key associates. Bajaj Finserv’s subsidiaries are performing well. We believe that healthy traction in all businesses would generate consolidated revenue and profit for Bajaj Finserv.”

Further, the report mentions: “With regard to Bajaj Auto Ltd (BAL), we remain positive on the business outlook and expect exports to remain a key growth driver in fiscal 2023. We expect BAL to continue to increase its market share in the domestic and export markets, given its strong portfolio of premium brands and cost-effective entry-level electronic fuel injection systems.”

Buy Call of Sharekhan on Bajaj Holdings & Investment Ltd

Buy Call of Sharekhan on Bajaj Holdings & Investment Ltd

“BHIL will continue to benefit from the strong dividend policies of BFS and BFL. We maintain our buy rating on BHIL with a revised PT of Rs. 7,615, taking into account the rise in valuations of its key partner, Bajaj Finserv Ltd. .” says Sharekhan’s latest report.

To summarize the whole report, in one title, the report mentioned: “A positive outlook for the future”.

Key Risks of Sharekhan's Buy Call

Key Risks of Sharekhan’s Buy Call

In the report, Sharekhan mentioned two key risks on the buy call; the report says,

• “Any slowdown in consumer credit growth may pose a risk to BFL’s earnings growth and profitability.

• Any slowdown in export markets and adverse currency fluctuations may affect BAL’s earnings. Worsening chip shortages may negatively impact our estimates.”

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