Buy Bajaj Finance Ltd - Motilal Oswal

Bajaj Finance Limited (BAF IN; Mkt Cap USD 512m, CMP Rs 619; Buy)

Bajaj Finance Ltd.'s (BFL) PAT grew 180% YoY to Rs 76 crores in 3QFY11, led by strong growth in disbursals and fall in loan loss provisions.

Disbursals grew 129% YoY and 30% QoQ, to Rs.2774 crores in 3Q FY11.

Loan loss provisions as % of NII have come down substantially from 30.8% in 3QFY10 to 15.8% in 3QFY11.

Due to better than expected performance in 3Q FY11 & 9M FY11, we have increased the earnings estimate by ~19% for FY11 & FY12 to Rs.235 crs & Rs.278 crores respectively. The revised EPS stands at Rs.64/76 for FY11E 12E respectively.

Source : Equity Bulls

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