Jefferies has initiated coverage on Bajaj Finserv with a buy rating and a target price of ₹2,420, citing strong structural growth prospects across the group’s financial businesses. As the holding company for Bajaj Finance (BAF), Bajaj Allianz Life Insurance (BALIC), and Bajaj Allianz General Insurance (BAGIC), Bajaj Finserv is expected to benefit from multiple tailwinds including lower interest rates supporting BAF, improving profitability in BALIC, and profitable growth in BAGIC aided by the motor third-party premium hike.
The brokerage also highlighted the potential of Bajaj Finserv’s new ventures in mutual funds, healthcare, technology, and ventures, which it said could add meaningful option value in the long term. Jefferies sees limited impact from Allianz’s exit and Jio Financial Services’ entry into the market, arguing that Bajaj Finserv’s strong distribution and execution capabilities provide resilience against competition. It expects a 22% compound annual growth rate in core earnings, making the stock attractive at current valuations.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
