Buy Bajaj Holdings & Investment Stock For Target Price of Rs. 7615: Sharekhan

Sharekhan, a leading brokerage firm, has given a buy call for a large cap company from the Bajaj Group. The brokerage firm is highly bullish on Bajaj Holdings & Investment Ltd and has given the stock a target price of Rs. 7615.

The stock price has been surging rapidly over the past few weeks and is currently in the correction phase per the charts. The latest report of Sharekhan suggests that the stock can surge more than 16% from the current market price.

Outlook of Bajaj Holdings & Investment Ltd (BHIL)

The Reserve Bank of India has registered Bajaj Holdings & Investment Ltd. as a Non-Banking Financial Institution - An investment and Credit Company. The company conducts business as an investment company and has more than 30% stake in big 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. However, the stock is trading almost twice its book value, but the latest brokerage report of Sharekhan suggests it has the potential to reach the target price of Rs. 7615.

Valuation Outlook of Bajaj Holdings & Investment Ltd

According to the latest report of Sharekhan, "BHIL's business depends upon the valuations of its investments, including that of its key associates. Bajaj Finserv's subsidiaries are performing well. We believe healthy traction in all businesses would drive consolidated revenue and earnings for Bajaj Finserv."

Furthermore, the report mentioned, "With respect to Bajaj Auto Ltd (BAL), we remain positive on the business outlook and expect exports to remain a key growth driver in FY2023. We expect BAL to continue to increase its market share in domestic and export markets, given its strong portfolio of premium brands and cost-effective electronic injection systems at entry level."

Buy Call of Sharekhan On Bajaj Holdings & Investment Ltd

"BHIL will continue to benefit from strong dividend policies of BFS and BFL. We maintain our Buy rating on BHIL with a revised PT of Rs. 7,615, factoring upside in valuations of its key associate, Bajaj Finserv Ltd." said the latest report of Sharekhan.

To summarize the whole report, in one headline, the report mentioned, "Positive outlook ahead."

Key Risks On Buy Call of Sharekhan

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

• "Any slowdown in consumer finance growth may pose a risk to earnings growth and BFL's profitability.

• Any slowdown in export markets and unfavourable forex fluctuations can affect BAL's profit. Aggravation of chips shortage can impact our estimates adversely."