Bajaj Finance Ltd. share price target

BAF reported a good set of numbers in Q4FY24, against the backdrop of RBI’s
embargo on EMI and Ecom cards which affected PBT by ~4%, largely meeting
Consensus estimates. Management gave guidance for FY25 AUM growth of ~26-
28% and RoA of ~4.6-4.8% of AAUM, with profitability improving in the second
half as the first half will see some moderation in NIM on account of elevated
borrowing cost.

We maintain our BUY recommendation on the stock.

Bajaj Finance’s (Bajaj) Q4FY24 financial performance was mixed as AUM growth, new customer acquisition, asset quality
and operating efficiencies continued to trend as envisaged; continued stress in rural B2C and 21bps QoQ NIM contraction were dampeners.

Bajaj Finance (BAF)’s 4QFY24 reported PAT grew ~21% YoY to
~INR38.2b (in line), while FY24 PAT rose ~26% YoY to INR144.5b.

We initiate coverage on Bajaj Finance (BAF) with a BUY recommendation and
Mar-25E TP of Rs9,000/sh (~23.4% upside), implying FY26E consolidated P/B
of 5.1x.

Consumer Goods: What production and price data of consumer goods say? TATA: UK transition and TSK2 to bolster growth; maintain BUY. BAF: Mixed quarter; maintain BUY. DALBHARA: Soft prices constrain growth

We maintain our BUY recommendation on the stock.

However, BAF has stated that the financial impact of the regulator's action would not be material. We believe the stock to remain under pressure in the near term.