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Motilal Oswal Report
Bajaj Finance Ltd. is transitioning into a more mature phase of growth, characterized by tighter risk controls, moderated expansion in select segments, and a sharp pivot toward technology and customer monetization. According to Motilal Oswal, this will enhance long-term earnings visibility and reduce cyclicality.
While the stock has corrected sharply over the past one month, the brokerage believes ongoing global turmoil could result in near-term uncertainties, including potential prolonged stress in unsecured MSMEs (especially export-linked) and elevated credit costs over the next few quarters.
Regulatory overhangs such as the NBFC-to-bank transition and leadership norms, as indicated in recent media reports could also weigh on the stock in the near term, despite the company's succession planning currently being underway.
Current valuations (~3.7x FY27E price/book value, ~20x P/E) are fair but not particularly compelling in the context of near-term uncertainties.
Motilal Oswal reiterates its Neutral rating on the stock with a target price of Rs 900 (premised on 3.6x Dec'27E book-value-per-share).
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