Bajaj Finance
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Bajaj Finance's management has expressed a confident outlook, targeting a robust 24% growth in assets under management (AUM) for FY27, driven by AI-led underwriting and a strategic focus on expanding its gold loan business. This aligns with Vista's forecast of accelerating revenue growth and improving margins, supported by a strong balance sheet and proactive risk management. The company's emphasis on digital transformation and operational efficiencies is expected to enhance profitability, despite potential macroeconomic headwinds such as geopolitical uncertainties and inflationary pressures. The NBFC sector's improving pricing power and government support for MSMEs further bolster Bajaj Finance's competitive position. Over the next 12-24 months, key opportunities include the expansion of the gold loan segment and the launch of new business lines, while watchpoints include the impact of external economic factors on credit costs and the competitive landscape. Overall, Vista anticipates a fair valuation with an expected upside of approximately 28.6%, reinforcing the positive outlook for Bajaj Finance's growth trajectory
Why We Like This Stock
- Management's target of 24% AUM growth for FY27 indicates strong revenue momentum
- The focus on AI-led operational efficiencies is expected to enhance profitability and asset quality
- Government support for MSMEs and improving pricing power in the NBFC sector provide a favorable backdrop for growth
Things To Watch Out For
- Geopolitical uncertainties and inflationary pressures may impact borrowing costs and consumer sentiment
- The transition towards a higher mix of secured, lower-yielding assets could moderate margin expansion
- Competitive pressures in the NBFC sector may challenge market share and pricing strategies
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 36,088 | 44,717 | 53,316 | 57,081 | 70,032 |
| Profit Before Tax (Cr.) | 19,323 | 22,116 | 26,082 | 33,929 | 42,515 |
| PBT Margin | 53.5% | 49.5% | 4892.0% | 59.4% | 60.7% |
| Net Profit (Cr.) | 14,361 | 16,440 | 19,137 | 24,934 | 30,730 |
| Earnings Per Share | 23.1 | 26.2 | 30.3 | 39.4 | 49.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 1,160 | 30-Apr-2026 |
| Bernstein | ▼ Reduce | 840 | 31-Jul-2026 |
| CLSA | ▲ Buy | 1,300 | 31-Jul-2026 |
| Citigroup | ▲ Buy | 1,300 | 31-Jul-2026 |
| Emkay Global | ▼ Reduce | 1,050 | 31-Jul-2026 |
| Geojit Financials | ▲ Buy | 1,045 | 14-May-2026 |
| HDFC Securities | ▲ Buy | 1,100 | 30-Jul-2026 |
| HSBC | ▲ Buy | 1,270 | 31-Jul-2026 |
| ICICI Securities | ▲ Buy | 1,250 | 31-Jul-2026 |
| JMFinancials | ▲ Buy | 1,220 | 20-Jul-2026 |
| JPMorgan | ▲ Buy | 1,215 | 03-Jul-2026 |
| Jeffries | ▲ Buy | 1,210 | 03-Jul-2026 |
| Kotak Securities | ▲ Buy | 1,075 | 30-Apr-2026 |
| Macguire | ▼ Underperform | 850 | 31-Jul-2026 |
| Moneycontrol | ▼ Sell | nan | 31-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 1,225 | 31-Jul-2026 |
| Motilal Oswal | ▲ Buy | 1,300 | 31-Jul-2026 |
| Nirmal Bang | ▲ Buy | 1,100 | 30-Apr-2026 |
| Nomura | ▲ Buy | 1,140 | 31-Jul-2026 |
| Nuvama | ► Hold | 1,175 | 31-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 1,125 | 31-Jul-2026 |
Company Overview
Show Company Profile
Bajaj Finance Limited operates as a deposit-taking non-banking financial company in India. The company offers financing for various products, such as consumer electronics, furniture, digital products, e-commerce purchases, retail spends, and two and three-wheelers; and personal, unsecured, home, and secured, gold, and car loans. It also provides secured and unsecured loans to micro, small, and medium enterprises, SMEs, and professionals; loans against property, mutual funds, insurance policies, and shares; developer finance and lease rental discounting services; and new and used car financing, and tractor financing. In addition, the company offers commercial and rural lending; public and corporate deposits; loans against securities; micro-finance and auto financing lending; and broking and margin trade financing services. Further, it distributes life, health, and general insurance products. The company was formerly known as Bajaj Auto Finance Limited and changed its name to Bajaj Finance Limited in September 2010. The company was incorporated in 1987 and is based in Pune, India. Bajaj Finance Limited is a subsidiary of Bajaj Finserv Ltd.