Buy Bajaj Finserv; target of Rs 2150: Emkay Global Financial

Emkay Global Financial's research report on Bajaj Finserv

Our positive stance on the stock is underpinned by three factors: 1) Notwithstanding temporary hiccups, the established businesses of BAF and BAGIC remain arguably the best in the industry and maintain an edge. 2) BALIC has navigated well through challenging times and is now among the top nonbank-owned franchises. 3) Newer businesses like Bajaj Finserv AMC and Bajaj Securities complete the product suite, while Bajaj Finserv Health provides a huge optionality in the long term with its endeavor to create India's ‘Optum’ in the healthcare space. Overall, we see BJFIN’s consolidated PAT compounding at 24% over FY24-27E to Rs154bn. We believe the BJFIN play is apt for gaining exposure to established and fortified franchises like BAF and BAGIC, along with optionality emerging from newer ventures like Bajaj Finserv Health.

Outlook

We initiate coverage on Bajaj Finserv (BJFIN) with a BUY recommendation and Sep-25E TP of Rs2,150/share (~16% upside), implying FY26E consolidated P/B of 4.1x.