Bajaj Finserv shares climbed more than 2% in Thursday’s trade after global brokerage firm Jefferies initiated coverage on the stock with a ‘Buy’ rating and set a target price of ₹2,420, citing robust structural growth prospects across the group’s financial services businesses. As of 9:39 AM, the shares were trading 1.25% higher at Rs 1,983.00.
As the holding company of Bajaj Finance (BAF), Bajaj Allianz Life Insurance (BALIC), and Bajaj Allianz General Insurance (BAGIC), Bajaj Finserv is positioned to benefit from multiple industry tailwinds. Jefferies noted that lower interest rates are likely to support Bajaj Finance, while profitability in BALIC is on an improving trend. For BAGIC, the recent hike in motor third-party premiums is expected to drive profitable growth.
The brokerage also highlighted the long-term potential of Bajaj Finserv’s new ventures in mutual funds, healthcare, technology, and financial ventures, which could create significant value addition in the future.
On the competitive front, Jefferies downplayed concerns over Allianz’s exit and the entry of Jio Financial Services, stating that Bajaj Finserv’s strong distribution network and proven execution capabilities will continue to provide resilience against rising competition.
Jefferies projects a 22% compound annual growth rate (CAGR) in core earnings for Bajaj Finserv, making the stock attractive at current valuations.
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