Buy Bajaj Finserv; target of Rs 2350: Sharekhan

Sharekhan's research report on Bajaj Finserv

Bajaj Finserv unveiled its new long-range strategy for FY25-29, identified new megatrends across business lines and intends to leverage AI capabilities to improve processes, products predict customers needs and expand faster. At the same time, the focus remains on capital efficiency, profitable growth and healthy RoEs. Healthcare / AMC business are likely to break even in the next 3-5 years. Company has guided for a 20-22% CAGR in total income to Rs 3 lakh crore, 18-22% growth in PAT to Rs. 20,000 crore and 17-18% growth in customer franchise to 20 crore by FY 2029E.

Outlook

We maintain a Buy rating with an unchanged SOTP-based PT of Rs. 2,350. We believe the group is well-positioned to capture the structural growth story across the financial landscape (lending, investing, and protecting) in India over the medium to long term.