Bajaj Finance Gets A 'Neutral' Rating From Motilal Oswal After Its Investors Day, Here's Why

Motilal Oswal Report

Bajaj Finserv hosted its investor day on December 10, 2024, wherein the senior management of Bajaj Finance Ltd. led by Mr. Rajeev Jain, MD, unveiled BAF 3.0 – a FINAI company - and gave a sneak peek into its Long-Range Strategy 2025-29.

Bajaj Finance has demonstrated strong growth in the last 17 years, establishing itself as a leader in India’s financial services sector.

With a robust strategy underpinned by innovation and technology, Bajaj Finance is well poised to achieve its FY25 targets, including Rs 4 trillion in AUM and continued leadership in financial performance. In FY25, Bajaj Finance aims to disburse over 40m loans and scale up to a 100 million customer franchise.

While Bajaj Finance Ltd.'s valuations are attractive at 3.7 times price/book value and 20x FY26E P/E, we do not anticipate any significant upside catalysts until it successfully navigates the asset quality challenges in its B2C loan book and makes concerted efforts to improve the proportion of secured loans in its loan mix.

Maintain Neutral with a target price of Rs 7,500 (3.6x Sep’26E P/BV).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.