Morgan Stanley keeps PT on India's Bajaj Finance despite stake sale in housing finance unit

Bajaj Housing Finance

18/09/2024 09:49

** Shares of Bajaj Finance  BJFN.NS  up nearly 3.5% at 7,635
rupees, eyes best day since early June
        ** Stock is second-biggest gainer on benchmark Nifty 50
 .NSEI , which is down 0.2%
  
        ** Morgan Stanley keeps stock's PT unchanged at 900
rupees, implying 22% premium to Tuesday's closing price, despite
stake sale in its housing finance arm; reiterates "buy"
    ** Estimates BJFN earned capital gains of 22.5 bln rupees
($268.9 mln) for around 11% stake sale in Bajaj Housing Finance
 BAJO.NS , which will boost its cash reserves    
    ** Adds key catalyst for stock will be moderation in credit
costs in coming quarters as BJFN has been grappling with
elevated levels 
    ** Says BJFN's valuation attractive relative to its return
on equity and earnings per share growth 
    ** BAJO down 4%, surged 150% of its IPO price after bumper
listing on Monday
    


($1 = 83.6840 Indian rupees)

 (Reporting by Nishit Navin)
 ((nishit.navin@thomsonreuters.com;))