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Nifty at 22,450, Sensex down 460 pts; Bajaj Finance, Bajaj Finserv, Nestle India, IndusInd Bank top losers


April 26, 2024 / 12:05 PM IST

Sensex Today | Motilal Oswal downgrade Bajaj Finance to neutral

Management’s guidance for FY25 is below its long-term guidance on multiple metrics such as AUM growth, credit costs, RoA, and RoE. BAF’s key product segments (until now) have been the secular growth segments.

However, its foray into multiple newer products such as cars, tractors, CVs, and potentially MFI, could (in future) make its growth vulnerable to cyclicality despite having a well-diversified product mix.

Despite a healthy PAT CAGR of ~25% over FY24-FY26E, and an RoA/RoE of 4.3%/22% in FY26E, see limited upside catalysts.

Consequently, downgrade the stock to Neutral with a Target Price of Rs 7,800 (premised on 4.3x FY26E BVPS).



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