Bajaj Finance share price today: In a remarkable display of market performance, Bajaj Finance has outperformed its Nifty counterparts this year, generating a 36 per cent year-to-date return and creating Rs 1.5 lakh crore in investor value.
The company’s market capitalisation is approaching Rs 6 lakh crore, following its climb to a new 52-week peak of Rs 9,315 on Monday, signalling a significant breakthrough. Analysts are revising their price targets upwards, with CLSA setting a target of Rs 11,000, quoting, “Form is temporary, class is permanent.”
Elara Capital has raised its target to Rs 11,161, according to an ET report. Elara anticipates a 25 per cent AUM CAGR for Bajaj Finance during FY24-27, citing its robust business structure and growth catalysts. The NBFC is capitalising on favourable market conditions whilst expanding significantly in rural areas, having doubled its presence in 18 months. “Bajaj Finance’s diversification into high-growth areas such as gold loans, microfinance, and tractor loans will further bolster its growth trajectory,” said Elara.
The organisation’s cross-sell operations are showing positive results, with 62 per cent of customers contributing to a per customer profit of six. Ventura Securities commenced coverage with a BUY rating and Rs 10,205 target while the recent leadership changes have reinforced stakeholder confidence.
Regarding valuation considerations, OmniScience Capital’s Vikas Gupta observed that Bajaj Finance’s P/E ratio has increased from 26-27 in November to 35-36, approaching fair value.
BNP Paribas maintained a cautious stance, noting potential market oversight of peak borrowing costs expected in Q2FY25. They predict increased provisions for stressed segments, whilst acknowledging possible sentiment impacts in Q4FY25.
Nevertheless, the overall outlook remains positive, with analysts confident in Bajaj Finance’s sustained growth potential, supported by its diversified operations and market leadership. Investors will monitor quarterly results closely, particularly considering rising borrowing costs and potential personal loan market changes.
