Buy Bajaj Finance; target of Rs 9000: Emkay Global Financial

Emkay Global Financial's research report on Bajaj Finance

BAF has announced that on 2-May-24 the RBI has communicated to the company about removal of restrictions by the Regulator on BAF sanctioning and disbursing new loans under its ‘eCOM’ and ‘Insta EMI Card’ segments (restrictions put on 15-Nov-23) and suspension of issuance of EMI Cards to new customers (on 17-Nov-23). Though removal of these restrictions by the RBI is on expected lines (as the company had addressed deficiencies flagged by the RBI), the relief within less than 6 months not only comes as a positive surprise but also endorses Management’s ability to course-correct quickly when needed.

Outlook

Overall, we continue to see our coverage initiation thesis (Read: Execution machine robust as ever) playing out over the medium team, and reiterate our BUY rating with unchanged Mar-25E TP of Rs9,000/share.

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