Analysts at BoFA Securities expect up to 24% upside potential for Bajaj Finance shares over the next 12 months, citing plenty of leverage for growth.
BoFA Securities recommends a Buy rating on Bajaj Finance with a price target of Rs 8,750, which is the 12th highest price target for the stock in the market. Anand Rathi has the highest price target on Bajaj Finance of Rs 9,600, followed by Bajaj Finance and JM Financial at Rs 9,500 each.
The brokerage said its bullish bias was driven by the company’s focus on diversification, proactive action against uncertain growth and keeping its fiscal year targets unchanged. 2024.
The BoFA note adds that access to new liquidity pools will offset the high cost of capital (CoF) in the near term.
Listing the main growth drivers for Bajaj Finance, BoFA Securities said that expanding customer acquisition channels and accelerating new loans to improve sales finance capacity will drive growth.
Shares of Bajaj Finance rose for the second day in a row after a five-day losing streak before Jio Financial Services went public. The stock also ended as the highest gainer on the Nifty 50 index on Monday.
This bullish call comes amid concerns that the listing of Jio Financial will disrupt the financial services industry of which Bajaj Finance is a key player. InCred in a note on Monday also said incumbents like Bajaj Finance would not be threatened by the Jio Financial listing.
Shares have fallen as much as 10% since July 20, which was a record day for Jio Financial Services shares.
Bajaj Finance reported a 27% increase in net interest income year-on-year at Rs6,718 crore in the June quarter year-on-year. Television station CNBC18 poll worth Rs 6,997 crore.
Shares of Bajaj Finance rose 1.2% to Rs 7,130.55. The stock is up 9 percent on a year-over-year basis.