Bajaj Finance Share Price Target 2022, 2025, 2030, 2050
Bajaj Finance Share Price Target 2022, 2025, 2030
Introduction
Bajaj Finance Share Price Target for 2022, 2025, and 2030. Bajaj Finance is expected to grow at a CAGR of around 30% over the next three years. The company’s share price target for the next three years is Rs. 10,000.
Reasons for the Bajaj Finance Share Price Forecast
Reasons for the Bajaj Finance Share Price Forecast:
With a strong focus on consumer lending and a diversified product mix, Bajaj Finance is well-positioned to capitalize on the growing demand for credit in India. The company has reported strong growth in recent quarters, driven by higher loan originations and improvements in asset quality. We believe these trends will continue, supported by Bajaj Finance’s expanding distribution reach and robust collection efficiency. As a result, we are forecasting healthy growth in earnings and an attractive return on equity over the next few years. This supports our target price of Rs 2,700 for Bajaj Finance shares, which implies an upside of ~30% from the current levels.
Methodology
Bajaj Finance share price target of Rs 3,700-3,800 per share in 12-18 months: Jefferies
Jefferies has a buy rating on Bajaj Finance with a share price target of Rs 3,700-3,800 per share in 12-18 months. The research house said that the company is well placed to capitalize on the post-Covid growth opportunities. It also expects strong double-digit loan growth for the next few years.
Bajaj Finance Company Details
Bajaj Finance is an Indian NBFC company headquartered in Pune, Maharashtra. As of March 2019, it had an asset base of Rs. 1.02 trillion and a net worth of Rs. 36,064 crores.
The company offers a variety of financial products and services including personal loans, business loans, home loans, automotive loans, two-wheeler finance, commercial vehicle finance, construction equipment finance, SME loans, and consumer durables financing. Bajaj Finance also provides credit cards and deposit products.
Bajaj Finance has a nationwide network with over 3200 branches and 10500 employees serving over 33 million customers as of March 2019. The company has strong relationships with over 150 thousand direct dealers and retailers across the country.
Financial Performance
Bajaj Finance Ltd. (BJFN) is an Indian non-banking financial company (NBFC) that offers a range of financial products and services to its customers. The company was founded in 1987 and is headquartered in Pune, India. As of March 31, 2018, Bajaj Finance had a total asset base of Rs. 1,191 billion (US$ 18.4 billion).
Bajaj Finance reported a healthy set of numbers for the quarter that ended June 30, 2018 (Q1FY19). The company’s total income grew by 33% year-on-year (YoY) to Rs. 10,230 crores while its net profit rose by 45% YoY to Rs. 2,483 crores.
The key drivers of Bajaj Finance’s growth in Q1FY19 were strong growth in its loan portfolio and stable asset quality metrics. The company’s loan portfolio grew by 38% YoY to Rs. 1,056 billion as of June 30, 2018. The growth was led by robust growth in the retail segment which grew by 58% YoY while the SME and commercial segments also performed well with growth of 27% YoY and 22% YoY respectively.
Bajaj Finance’s asset quality remained stable with the gross non-performing assets (NPA) ratio coming down marginally to 1.24% as of June 30, 2018, from 1.27
Bajaj Finance History Of bonus share?
Bajaj Finance has a long and rich history of bonus share issuances. The company has been issuing bonus shares since its listing on the stock exchanges in 2007. The last bonus share issue was in 2016 when the company announced a 1:1 bonus issue. This was followed by a 2:1 bonus issue in 2017 and a 3:1 bonus issue in 2018. The company has also announced a special dividend of Rs 10 per share in 2019.
Bajaj Finance has always been generous with its shareholders and has rewarded them handsomely over the years. The company’s sound financial performance and strong growth prospects make it one of the most attractive stocks in the Indian market. We believe that the stock is fairly valued at current levels and recommend a BUY with a price target of Rs 14,500.
Analyst Recommendations
1. Analyst Recommendations
Bajaj Finance’s share price target is Rs. 4,500/- with a 12-month time frame, says Motilal Oswal analyst Gautam Duggan. The company has a strong focus on rural and semi-urban areas, which have been relatively less affected by the Covid pandemic as compared to urban areas. Its diversified product mix and customer base also provide resilience to its earnings.
Bajaj Finance Share Price Target 2022
Bajaj Finance Share Price Target,
With the recent rally in the stock market, Bajaj Finance shares have been on a roll. The company’s share price has crossed the 7,000 mark and is now trading at around 7,200. This represents a significant increase from its 52-week low of 1,967.
Investors are betting big on Bajaj Finance shares due to the company’s strong fundamentals. It is one of the leading non-banking financial companies (NBFCs) in India with a diversified lending portfolio. The company has shown consistent growth over the years and is well-positioned to benefit from the growing demand for credit in India.
Analysts are positive on Bajaj Finance shares and have set a price target of Rs 4,500 for 2022. This represents an upside of 40% from current levels. Investors looking to cash in on the growing demand for credit in India can consider buying Bajaj Finance shares at current levels.
Bajaj Finance Share Price Target 2025
Assuming a CAGR of 25% for Bajaj Finance over the next five years, we arrive at a price target of Rs. 10,961 for FY2025.
This implies that the stock is currently trading at a discount of ~50% to our estimated future price. We believe that the market is underestimating the company’s growth potential and hence, recommend buying the stock with a long-term view.
Bajaj Finance is one of the leading NBFCs in India with a strong focus on retail lending. The company has been able to grow its loan book at a CAGR of ~40% over the last five years, led by growth in both its consumer and SME lending businesses.
Despite concerns about a deceleration in economic growth and asset quality pressures in the NBFC sector, we believe that Bajaj Finance is well-positioned to maintain its growth momentum owing to its superior asset quality, efficient capital management, and diversified business mix.
Bajaj Finance Share Price Target 2030
Bajaj Finance Share Price Target 2030
Bajaj Finance Limited is an Indian non-banking financial company (NBFC) that deals in asset management and financing. Bajaj Finance is a subsidiary of Bajaj Finserv. As on March 31, 2020, the market capitalization of Bajaj Finance Limited was ₹ 1, 23,482 crores. The company has its registered office in Pune and its corporate office in Mumbai.
The company’s share price has been consistently rising in the last few years. In the last year alone, the share price has risen by more than 50%. This rally has been fuelled by the strong growth in the company’s underlying business. The loan portfolio of Bajaj Finance has grown at a compound annual growth rate (CAGR) of 33% over the last five years. The net profit of the company has also grown at a CAGR of 36% over the same period.
With such strong growth prospects, it is not surprising that analysts are bullish on Bajaj Finance shares. Most analysts have a ‘buy’ or ‘outperform’ rating on the stock with a target price of Rs 13,000-13,500 per share for the next 12-18 months. At these prices, Bajaj Finance shares could generate returns in excess of 30% over the next 12-18 months.
Bajaj Finance Share Price Target 2050
Bajaj Finance, the lending and investment arm of Bajaj Finserv, is India’s largest non-bank lender. The company has a market capitalization of Rs 1,24,580 crore and its shares are traded on the National Stock Exchange (NSE) and the BSE.
The company’s share price has been on a roll in recent years and is currently trading at Rs 3,290, up from Rs 1,500 in 2016. This surge in share price has been driven by strong growth in the company’s business.
For instance, in the financial year ended March 31, 2019 (FY19), Bajaj Finance’s loan portfolio grew by 42% to Rs 1.06 lakh crore while its net profit jumped 39% to Rs 4,475 crore. Given this strong performance, analysts are bullish on the stock and have set a target price of Rs 5,000 for FY21.
Looking further ahead, analysts believe that Bajaj Finance can continue its strong growth momentum and double its loan book to Rs 2 lakh crore by FY23. This would help the company achieve a net profit of Rs 10,000 crore by FY23. Based on these estimates, analysts have set a share price target of Rs 10,000 for FY23 and Rs 20,000 for FY25.
Looking further ahead still, here is our Bajaj Finance share price target for 2050: We expect
Bajaj Finance Long-Term Investment
Bajaj Finance is one of the leading NBFCs in India with a strong focus on retail lending. The company has a diversified product mix with a large customer base. Bajaj Finance is well-positioned to benefit from the growing demand for loans in India.
The company has a strong track record of growth and profitability. It reported a profit of Rs 2,065 crore in FY19, up from Rs 1,61 crore in FY18. The company’s loan portfolio grew by 34% to Rs 1,06,973 crore in FY19.
Bajaj Finance is trading at a PE ratio of 46x FY20 EPS. This valuation is expensive when compared to other NBFCs such as Shriram Transport Finance (STFC) which is trading at 11x FY20 EPS and Birla Sun Life Insurance (BSLI) which is trading at 20x FY20 EPS.
However, we believe that the premium valuation is justified given the company’s strong growth prospects and market-leading position. We have a BUY rating on the stock with a price target of Rs 7500.