Hold Bajaj Finserv; target of Rs 2137: Deven Choksey

Deven Choksey hold rating on Bajaj Finserv with a target price of Rs 1388 in its research report dated November 13, 2025.

Broker Research

November 13, 2025 / 10:25 IST

hold

26 Aug, 2025 12:21

Volume

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Deven Choksey report on Bajaj Finserv

The company delivered a resilient performance with healthy revenue growth but moderated sequential profitability due to higher expenses and provisions. Revenue from operations rose 11.0% YoY (up 5.5% QoQ) to INR 3,74,029 mn almost in-line with our estimates, supported by strong lending momentum. Net interest income increased 10.3% YoY to INR 3,05,016 mn. Operating costs remained elevated, employee expenses rose 12.5% YoY, while other operating expenses grew 7.3% YoY, leading to a 10.7% QoQ increase in total operating expenses. Operating profit declined 2.3% QoQ to INR 90,989 mn but was up 15.7% YoY. Provisions increased 7.8% QoQ (19.9% YoY) to INR 22,769 mn, weighing on profitability. Consequently, PBT stood at INR 68,251 mn (-5.3% QoQ / +14.4% YoY), and net profit came in at INR 47,465 mn (-10.9% QoQ / +13.5% YoY). Profit for shareholders (excluding minority shareholders) declined 19.5% QoQ to INR 22,441 mn due to higher minority interest, though it grew 7.5% YoY.

Outlook

We value Bajaj Finserv on a SOPT basis, valuing Bajaj Life Insurance at 2.0x FY27E EV; valuing Bajaj General Insurance at 1.5x FY27E BV; valuing its stake in Bajaj Finance at 4.8x FY27E ABV and its investments at INR 15 per share, implying a target of INR 2,137 per share and revise our rating from “ACCUMULATE” to “HOLD” on the stock.

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