Bajaj Finance Q3 Results Review: Motilal Oswal Reiterates 'Neutral' Rating On The Stock — Here's Why

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Motilal Oswal Report

Bajaj Finance Ltd. reported a robust performance during the quarter driven by healthy AUM growth, while higher non-interest income and well-contained credit costs led to an earnings beat. Bajaj Finance’s key product segments (until now) have been the secular growth segments. However, its foray into multiple new areas, such as cars, tractors, commercial vehicles, and micro finance, could (in the future) make its growth and credit costs vulnerable to cyclicality, despite having a well-diversified product mix. 

Despite a healthy PAT CAGR of ~23% over FY24-FY27E and RoA/RoE of 4.1%/21% in FY27E, we see limited upside catalysts.

Consequently, we reiterate our Neutral rating with a target price of Rs 8,300 (premised on four times Sep’26E book value per share).

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