Sharekhan has given Buy recommendation for Bajaj Finance with a target price of Rs. ekhan is bullish on Bajaj Finance has recommended buy rating on the stock with a revised price target (PT) of Rs. 9,097 in its research report issued on Oct 27, 2021
BAF stands poised to deliver robust AUM growth of 23-25% over FY22E through FY24E with RoE and RoA of 27% and 6% over FY23E and FY24E, respectively. This is likely on the back of improving auto financing cycle, pick up in mortgage lending business and lower estimates of credit cost supported by strong balance sheet. Further, operating efficiencies in terms of lower employee costs and collection is also expected to aid profitability. BAF is one of the most diversified NBFCs with a wide range of product offerings and is one of the early movers from Physical’ to ‘Phygital’. It has the ability to demonstrate high credit growth in the new credit cycle, aided by its strong cross-sell franchise and robust risk management framework. We maintain our Buy rating on the stock with a revised price target (PT) of Rs. 9,097.