November 20, 2018 / 4:41 AM / in 4 months

BUZZ-India's Bajaj Finance: HSBC starts coverage with 'buy' rating

** HSBC initiates coverage on non-banking financial co Bajaj Finance Ltd at target price of 3,000 rupees and a ‘buy’ rating

** Management has demonstrated its execution capability, making co one of the fastest-growing and most profitable banking, financial services and insurance (BFSI) cos in India, with a valuation premium to peers - HSBC

** Stock has a PE ratio of 30.46 for the next 12 months, highest among its peers, according to Refinitiv data

** Bajaj Fin benefits from network effect of complementary payments and e-commerce, giving it a growing customer franchise, HSBC analysts write

** Co’s stable asset quality comes from having repeat customers accounting for 60 pct of its consumer business - HSBC

** 14 of 23 brokerages covering the stock rate it “buy” or higher, nine “hold” and three “sell”; their median PT is 2,473 rupees - Refinitiv data

** Stock rises as much as 1.4 pct to 2,392.50 rupees

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