Buy Bajaj Finance; target of Rs 7905: Anand Rathi

Anand Rathi's research report on Bajaj Finance

Healthy, 29% y/y, AUM growth, was offset by high, Rs19.1bn, provisions leading to Bajaj Finance’s muted 13% y/y consol PAT growth. Despite premium valuations, we retain a Buy, on the best-in-class execution skill, robust customer franchisees and strong tech architecture. We lower estimates on higher credit-cost assumptions. At our higher TP, the stock would trade at 4.4x FY26e consol BV (4.6x earlier).

Outlook

At our 12-mth higher TP, the stock would trade at 4.4x FY26e consol BV and 23x FY26e EPS. It has traded at higher valuations in the past.

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