Sharekhan's research report on Bajaj Finance
Net earnings beat estimates on strong AUM growth and lower opex. However, credit cost stayed high. Management highlighted stiff competition in mortgages business and rising stress in MSME segment. It also highlighted that consumer leverage remains an area of concern. Company has taken several steps across products to reduce contribution of customers with multiple loans. It continues to guide for a credit cost of 1.85-1.95% in FY26E.
Outlook
We maintain our ‘Buy’ rating with a revised PT of Rs. 1,000. At the CMP, the stock trades at 4.6x FY26 BV and 3.9x for FY27 BV.
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