Buy Bajaj Finance; target of Rs 1150: Prabhudas Lilladher
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Prabhudas Lilladher issued a buy rating for Bajaj Finance with a target price of Rs 1150.
- ✓The firm said AUM grew 26.5% year-on-year to INR 5,846.2bn.
- ✓Strong momentum in mortgages and consumer finance helped this growth.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Prabhudas Lilladher's research report on Bajaj Finance AUM grew 26.5% YoY to INR5,846.2bn driven by strong momentum across mortgages and urban/ rural consumer finance, while MSME growth is expected to recover in H2FY27. We build AUM growth of 26%/25% for FY27/FY28E in-line with management guidance. NIM (calc.) moderated to 9.5% and is likely to face marginally higher compression than earlier guidance (10-15bps) amid rising funding costs. Fee-income growth is expected at 15-18% over the medium term, with final regulations on insurance commissions and revolver loans remain key monitorables.
Despite sequential asset quality deterioration, partly due to temporary shorter-tenor gold loan schemes, management remains confident of the credit cost outlook. We factor in credit cost of ~1.6% for FY27E.
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