Bajaj Finance Q4 Results Review: Motilal Oswal Maintains 'Neutral' Stance, Sees Rich Valuations Limits Upside

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Motilal Oswal Report

Bajaj Finance Ltd. delivered a healthy performance during the quarter, supported by robust AUM growth. Despite a sequential rise in credit costs due to the expected credit loss model refresh, asset quality showed notable improvement. Bajaj Finance will look to accelerate its growth in the unsecured segments in FY26, as the stress in its B2C segments gradually dissipates.

The stock trades at 4.1x FY27E. Despite a healthy PAT CAGR of ~25% over FY25- FY27E and RoA/RoE of 4.1%/21% in FY27E, we see limited upside catalysts given the rich valuations and lack of near-term re-rating triggers.

Consequently, we reiterate our Neutral rating on the stock with a target price of Rs 10,000 (premised on 4.5x Mar’27E book value per share).

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