CLSA has reiterated its Outperform rating on Bajaj Finance, setting a target price of ₹9,200, which implies a 26% upside from the current market price (CMP) of ₹7,291.70.
Key Insights:
- PAT Growth Recovery: CLSA expects PAT growth to rebound in FY26 following previous downgrades.
- Top Pick in Financials: Bajaj Finance continues to hold its position as the top pick in the financial sector.
- Robust CAGR Projections: The company is forecasted to achieve:
- 25% AUM CAGR over FY25-27.
- 27% PAT CAGR over the same period.
- Credit Cost Improvements: A 20 basis points improvement in credit costs is expected in FY25.
- Stock Returns Alignment: Returns are anticipated to align with earnings growth.
Conclusion:
Bajaj Finance is well-positioned for strong growth in the coming years, driven by robust financial metrics and operational efficiency. CLSA’s target underscores the confidence in the company’s performance trajectory.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
