Prabhudas Lilladher's research report on Bajaj Finance
The impact of rate hikes on cost of funds is more gradual than anticipated although we expect NIM’s to moderate to 11.8% in FY24 from 12.1% in FY23. Management has maintained AUM growth guidance in the corridor of 25%-27% even as competition intensity remains high especially in consumer finance and mortgage segment. Rerating can happen if company manages to achieve growth guidance and increase stickiness of new to franchise customers. Maintain ‘BUY’.
Outlook
We maintain ‘BUY’ rating and our TP at Rs 7,835 on (7x Sep’24E PABV) as our FY24/25 estimates remain unchanged.
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