Bajaj Finance share price at attractive entry point, says Anand Rathi; recommends ‘Buy’ for 33% upside
Bajaj Finance shares with a 12-month target price of ₹8,630 per share, implying a nearly 33% upside from Friday’s closing price. The target implies that the stock would trade at 4.7x FY26e Book Value and 23x FY26e EPS. It said that at the current market price, the stock trades at 3.5x FY26e Book Value and 18x FY26 PE, with regulatory overhang priced in at this point.
The stock has traded at higher valuations in the past. Also Read: Paytm upper circuit: Stock gains 5% as Yes Securities upgrades stock to ‘Buy’, raises target price Analysts at the brokerage firm believe Bajaj Finance is on track to achieve its medium-term targets and gaining market share, with high growth, deepening product penetration and unmatched execution skills. Despite competition from other large corporate-backed NBFCs, analysts consider that the company is one of the fastest-growing proxies for the Indian premiumisation theme.
“Risk-weighted changes for personal loans have reduced competition in CD loans, which could be extremely beneficial to the company. Management aims to follow all suggestions made by the RBI about EMI cards by the quarter’s end. The recent clarification regarding credit-card partnerships should also be beneficial," Anand Rathi said in a report.
Meanwhile, only three of the top 12 upper-layer NBFCs are to be listed, including Tata Sons. Analysts believe keener competition would only spur innovation in the sector. Also Read: Ambuja, Bharti Airtel, SBI, L&T, Zomato among top 11 picks by Jefferies for next 5 years “The company’s loan-growth premium to peers is likely to be high.
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