ICICI Securities research report on Bajaj Finance
Bajaj Finance (Bajaj) is the only NBFC in India that prioritises customer ‘ownership’ over mere ‘lending’. Providing financial solutions to India’s burgeoning aspirational middle class forms the crux of Bajaj’s unique business model, which will allow the business to showcase >25% growth in AUM and RoE in the near future. The company sports the lowest cost of delivery (cost of funds + cost to assets) among NBFCs, which is backed by a strong cross-sell/up-sell engine (cross-sell customer base at >60% of total) and robust digital infrastructure – arm in arm, these form the bedrock of Bajaj’s leadership now and going ahead too in the NBFC space.
Outlook
We initiate coverage with a BUY and TP of INR 8,500 (SoTP), valuing standalone business at 5x FY26E BVPS and INR 830 towards housing subs. We model ~29% AUM CAGR and expect ~19-20% RoE over FY24-26E.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
