Bank of America (BofA) has maintained a ‘Buy’ rating on Bajaj Finance with a target price of ₹8,800/share, reflecting a potential upside of 19.5% from the current market price (CMP) of ₹7,367.90.
The Q3 business update highlighted positive AUM growth, alleviating investor concerns about a sharper year-on-year deceleration. The customer acquisition funnel has fully recovered, reinforcing the company’s ability to sustain industry-leading growth.
The focus now shifts to credit costs, which are expected to peak in Q3 at 222 basis points (bps), compared to 213 bps in Q2. BofA projects credit costs to stabilize at 210 bps in FY25 and further decline to 196 bps in FY26, indicating improved profitability in the coming years.
Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.
