Brokerage firm Elara Capital has upgraded its ratings on Bajaj Finance and SBI Card, citing improving lead indicators in the consumer finance space, despite lingering asset quality concerns.
Elara has upgraded Bajaj Finance to a ‘Buy’ and raised the target price to ₹11,161 from ₹8,892, highlighting that the “stage is set for the elephant to dance yet again.” The brokerage believes that the company’s strategic strengths are yet to be fully reflected in valuations and expects 25% CAGR in both AUM and EPS through the forecast period.
For SBI Card, Elara upgraded the rating to ‘Accumulate’ with a revised target price of ₹965, up from ₹796. The brokerage estimates a 16.5% EPS CAGR between FY24–FY27, backed by growth in card volumes, improved spending patterns, and cost discipline.
The note titled “Consumer Finance – Measured Yet Encouraging Uptrend” emphasizes that while asset quality challenges are not fully behind, key metrics are showing signs of stabilization and recovery across leading players.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
