Target: ₹ 1,060

CMP: ₹ 1,003.20

We highlight key takeaments from bajaj finance’s fy25 annual report. In Unsecured Loans, BAF GAINED Market Share of About 420/120 BPS Yoy in Consumer Durable/Personal Loans, Aided by Strong Growth in EMI Cards Post Lifting of the RBI Embargo and RBI Embargo and rain Salaried/Cross-Sell Pls. In salaarized pl, income criteria was relaxed (₹ 0.3 mn in fy25 vs about ₹ 0.5 MN/0.6 MN in Fy24/22), which broadens the customer base but rayses asset Quality Risks. Diversification into multiple segments remain a key strength, with non-baf auto, sme and its sub-segments like, like Industrial Equipment, Cv, Tractors and New Car Financing Delhi Underscoring baf’s Pivot Towards secured lending.

Tech Spends have Moderated (8 per cent yoy in fy25 vs 46 per cent Cagr over fy21-24) We expect pressure on yields due to movement in second segments to be offset by decline in cost of funds. Further, Pressure on Fee Income Should Be Largely Offset by Operating Leverage. Credit cost in fy26/27 should moderate from fy25 levels but still remain higher than long-term trends. We expect about 23/27 per cent aum/EPS Cagr during fy25-27e and maintain our buy rating with a revised tp of ₹ 1,060 Driven by Rollover, Valuing BAF at 4.4x/22X Sep’27 BVPS/EPS.

Published on September 12, 2025