Hold Bajaj Finance: target of Rs 1,050: ICICI Securities

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26 Aug, 2025 12:21

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While BFL has been at the forefront in customer acquisition over the past decade, as reflected in 12.5% market share in total loan booked, it is now shifting focus towards improving customer wallet market share. It plans to increase product per customer to 6.5x-7.5x from current level of 6.05x. Similarly, it expects retail credit market share to increase to 3.5-4% by FY30 from 2.8% currently. New approach would provide an opportunity to scale disbursement from INR 8bn/ month to INR 80bn/ month with lower credit cost and customer acquisition cost. While it offers 27 products, it continues to further augment its offering and plans to launch wealth management business. BFL is building a product propensity model to offer right product at right channel, i.e., web, app, social, POS, call centre and also comprehensive reward framework to build engagement and long-term relationships.

Bajaj Finance’s (BFL) FY26-30 strategic roadmap not only focuses on sustaining high growth but also emphasises on improving profitability. AI-enabled business process and product offerings are key strategic priorities with clear deliverables like – a) opex to NIM improvement to 31% from 33% as on Sep’25, b) GNPA of 20% growth and RoE in the medium term. Maintain HOLD with an unchanged TP of INR 1,050 – standalone business valued at 4.5x Mar’27E BVPS and INR 165 towards housing subs.

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