The shares of a Non-Banking Finance Company under the Bajaj Group that is mainly engaged in the business of lending with a diversified lending portfolio across retail, SME, and commercial customers with a significant presence in urban and rural India are in focus after brokerage firms’ upgraded their price targets on the stock.
Price Action
The shares of Bajaj Finance Ltd, with a total market capitalization of Rs 5.71 Lakh Crore on Tuesday, were trading at Rs 9,229.95 per share, which was 1.53 percent higher than the previous closing price of Rs 9,090.05. The shares of Bajaj Finance Ltd have generated a return of 33 percent in the past year, 28.4 percent in the past three years, and 262 percent in the past five years.
Financials
The company’s PAT saw a growth of 18 percent YoY from Rs 3,639 Crore in Q3FY24 to Rs 4,308 Crore in Q3FY25. Their Net Interest Income grew by 23 percent YoY from Rs 7,655 Crore to Rs 9,382 Crore over the same period.
The company’s Asset Under Management (AUM) stood at Rs 3,98,043 Crore which is a 28 percent YoY growth. Their EPS increased by 15 percent YoY from Rs 59.4 to 68.6. The company’s three-year CAGR for Revenue stood at 27.27 percent, Net Profit at 48.42 percent, and Financing Profit at 41.22 percent.
Geographic Presence
As of December 2024, Bajaj Finance Ltd has a wide geographic presence in India with total Urban lending locations of 1,599 and Rural lending locations of 2,660.
Long-term Guidance
The company gave long-term guidance on the following; AUM growth of 25 to 27 percent, Profit growth of 23 to 24 percent, ROA growth of 4.6 to 4.8 percent, and ROE growth of 21 to 23 percent.
Also read: Nifty 50 rebounds but majority of stocks still trapped in death cross
Brokerage Targets & Rationale
Many Brokerage Firms have upgraded their target price on Bajaj Finance Ltd’s stock after positive developments regarding the company’s outgoing MD & CEO Rajeev Jain. As per the filing, the company informed that Mr. Rajeev Jain has been promoted to the position of Vice Chairman for three years, effective from April 1, 2025.
On Friday, CLSA set the highest target at Rs 11,000 for Bajaj Finance Ltd’s shares. It said that credit costs are near their peak and should moderate in the financial year 2026 and anticipates the company’s net profit to grow at a CAGR of 26 percent over the next two years.
BofA Securities has increased its price target to Rs 10,500 per share with a “Buy” recommendation on the stock. It noted that the recent developments in the management were a “well-executed plan”, and added that while earnings inflation will persist on its NIMs recovering and credit costs rising.
Citi has also increased its price target on the stock to Rs 10,200, retaining its “Buy” recommendation, and is optimistic about the leadership continuity of the company. Morgan Stanley has also raised its price target from Rs 9,300 to Rs 10,500, stating that Mr. Rajeev Jain’s continuity in the company will help improve investor confidence and reduce long-term uncertainty.
About Bajaj Finance Ltd
Bajaj Finance Ltd is a leading non-banking financial company (NBFC) under the Bajaj Group, providing a wide range of financial products, including loans, insurance, and wealth management services. It operates in consumer, SME, and commercial lending sectors. The company is known for its strong digital presence and innovative financial solutions.
Written By Adhvaitha Nayani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
