Bajaj Finance Limited (BFL), headquartered in Pune, is one of India’s leading non-banking financial companies and a subsidiary of Bajaj Finserv. Founded in 1987 initially as a vehicle financing entity, it has grown to become one of the most diversified NBFCs in the country. The company offers a broad spectrum of financial services to retail, SME, and commercial customers, spanning both urban and rural regions of India.
Bajaj Finance is primarily engaged in the business of lending across various sectors and accepts deposits from the public and corporations.
The stock of Bajaj Finance has captured the attention of investors and traders who are constantly searching for the next big chance in the stock market. Because the stock price went up 3 times in the last 3 years, many are unsure if Bajaj Finance is a solid stock to buy and own for the long term from the current price, despite its history of outstanding financial performance and development.
This article will examine Bajaj Finance’s share price target for the years 2023 to 2030 in more detail by delving into the numbers. So, buckle up and prepare for a deep dive into one of the hottest financial stocks in India!
Bajaj Finance has already given a return of more than 7.37% in 2023. As of November 15th 2023, Bajaj Finance’s share price is trading at Rs. 7,436 with a market cap of Rs. 4,59,584 Crore.
- Bajaj Finance declared Q2 FY24 results on Oct 17, 2023.
- YoY, revenue increased by 34.21%, and profit rose by 27.7%.
- QoQ, revenue grew by 7.04%, and profit increased by 3.31%.
- Selling, general & administrative expenses rose by 6.05% QoQ and 28.06% YoY.
- Operating income increased by 4.59% QoQ and 26.84% YoY.
- EPS for Q2 FY24 was ₹71.68, up by 30.87% YoY.
- Stock performance: 0.12% (1 week), 36.81% (6 months), 23.08% (YTD).
- Market capitalization: ₹489,733.5 Crore.
- 52-week high/low: ₹8,192 / ₹5,485.7.
- Analyst recommendations: 5 Sell, 3 Hold, 11 Buy, 10 Strong Buy.
- Consensus recommendation as of Oct 19, 2023: Buy.
Below are the trading platforms that you can use to purchase Bajaj Finance Ltd shares:
- Paytm Money (Recommended)
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The long-term share price targets for Bajaj Finance project a compelling growth trajectory over the next five years. In 2026, analysts anticipate the share price to fluctuate between ₹12,392.17 (maximum) and ₹8,674.52 (minimum). Looking ahead, 2027 showcases a further surge, with a maximum price target of ₹13,631.39 and a minimum of ₹9,541.97. The year 2028 brings even more substantial growth, projecting a maximum and minimum price of ₹19,083.94 and ₹9,541.97, respectively. In 2029, the share price is expected to range between ₹16,522.89 (maximum) and ₹8,261.45 (minimum).
Finally, the year 2030 presents a significant leap, forecasting a maximum price target of ₹21,479.76 and a minimum of ₹15,035.83. These projections collectively paint a bullish picture, indicating substantial long-term growth potential and positioning Bajaj Finance as an attractive investment opportunity in the financial landscape.
Financial Condition of Bajaj Finance Ltd: Last 5 years
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Over the past five years, Bajaj Finance has experienced significant growth, as evident from its financial data. The company’s revenue has nearly tripled, increasing from 18,487 crore INR in March 2019 to 41,397 crore INR in March 2023. This remarkable growth can be attributed to its ability to generate higher interest income, manage expenses effectively, and achieve a consistently high operating profit margin, which stood at an impressive 39% in March 2023.
Bajaj Finance has also demonstrated resilience by maintaining a stable dividend payout ratio, indicating its commitment to rewarding shareholders.
Additionally, the company’s net profit has more than tripled, climbing from 3,995 crore INR in March 2019 to 11,508 crore INR in March 2023. This growth is reflected in the significant increase in earnings per share (EPS), which rose from 69.12 INR in March 2019 to 190.07 INR in March 2023. Such impressive financial performance and profitability have undoubtedly contributed to the substantial increase in Bajaj Finance’s share price from 2,336 INR in June 2018 to 7,134 INR in June 2023.
Motilal Oswal on Bajaj Finance Ltd share price target
Bajaj Finance Ltd share price target by Jeffries
CLSA on Bajaj Finance Ltd share price target
As of November 15th 2023, the current share price of Bajaj Finance is ₹7,436.
Based on current trends and market analysis, the expected share price target of Bajaj Finance in 2023 is ₹8,295.90 (maximum) and ₹6,983.37 (minimum) in November 2023.
Based on current trends and market analysis, the expected share price target of Bajaj Finance in 2024 is ₹9,680.65 (maximum) and ₹6,572 (minimum).
Based on current trends and market analysis, the expected share price target of Bajaj Finance in 2025 is ₹11,802.07 (maximum) and ₹7,595.59 (minimum).
As per our price prediction, Bajaj Finance may not reach 50,000 INR within 2025 or 2030.
What is Bajaj Finance’s revenue growth over the last five years?
Bajaj Finance’s revenue has experienced substantial growth over the last five years. In March 2019, the company’s revenue stood at 18,487 crore INR, and by March 2023, it had reached 41,397 crore INR. This represents a remarkable revenue growth of approximately 124% over the five years. Bajaj Finance’s ability to consistently increase its revenue is a testament to its successful business strategies, expanding customer base, and effective market positioning in the financial services industry.
What is Bajaj Finance’s profit growth over the last five years?
Bajaj Finance has demonstrated impressive profit growth over the last five years. In March 2019, the company reported a net profit of 3,995 crore INR, which increased to 11,508 crore INR by March 2023. This represents a remarkable profit growth of approximately 188% over the five years. Bajaj Finance’s ability to consistently enhance its profitability is a result of its efficient financial management, strong customer base, and successful business expansion. The company’s focus on driving revenue growth while effectively managing expenses has contributed to its substantial profit growth over the years.
Is Bajaj Finance a good stock to buy?
Bajaj Finance is considered to be a good stock to buy by many investors due to its strong financial performance, market position, and growth potential. However, it is important to do your research and consult with a financial advisor before making any investment decisions.
Some factors that can impact Bajaj Finance’s share price in the future include economic conditions, interest rates, competition, regulatory changes, and company performance. Investors need to keep an eye on these factors and adjust their investment strategies accordingly.
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What do I like about Bajaj Finance?
- Bajaj Finance has achieved a commendable compound annual growth rate (CAGR) of 35.8% in terms of profit over the past five years.
- The price-to-earnings (P/E) ratio for Bajaj Finance stock is 35.1.
- There are positive expectations for Bajaj Finance Company to deliver a strong quarter.
In my opinion, Bajaj Finance shares present a compelling investment opportunity. The company has displayed impressive growth over the last five years, with its revenue nearly tripling and net profit more than tripling during that period.
Is it the right time to invest in Bajaj Finance shares? Considering the company’s impressive 20 to 30% year-over-year growth in both revenue and profit, along with a significant drop in the price-to-earnings ratio from 95 in June 2022 to 34 in August 2023, acquiring shares in Bajaj Finance today may seem like a promising opportunity.
It is the fastest-growing NBFC in India, and we have just got started. Credit Card penetration in India is in the single digits at just 5.5% whereas the same for the US is 77%. The growth prospect is immense.
One may argue with Jio launching Jio Finance, will Bajaj Finance not take a hit? I don’t think there is any need to worry. Bajaj Finance already has a team/offices set up, that has been increasing their sales YOY. All they need to do is to repeat the same process. Jio, on the other hand, may take time to catch up with Bajaj Finance.
Even if Jio Finance becomes a brand name in the finance industry, India has a huge market even for 5 to 10 such large companies to co-exist and yet keep growing YOY.
The consistent increase in earnings per share (EPS) reflects strong financial performance and profitability.
Bajaj Finance’s ability to generate higher interest income, effectively manage expenses, and maintain a robust operating profit margin demonstrates its resilience and solid business strategies.
Furthermore, the significant appreciation of its share price from 2,336 INR in June 2018 to 7,436 INR in November 2023 confirms the market’s recognition of its potential. Considering these factors, Bajaj Finance shares are a strong candidate for investors seeking long-term growth and returns.
What did we learn?
- 1 Bajaj Finance Q2 FY24 Highlights
- 2 How to purchase Bajaj Finance Ltd shares?
- 3 Bajaj Finance Ltd Share Price Prediction: 2023 to 2030
- 4 Financial Condition of Bajaj Finance Ltd: Last 5 years
- 5 Bajaj Finance Ltd share price target by Experts
- 6 FAQS
- 6.1 What is the current share price of Bajaj Finance?
- 6.2 What is the expected share price target of Bajaj Finance in 2023?
- 6.3 What is the expected share price target of Bajaj Finance in 2024?
- 6.4 What is the expected share price target of Bajaj Finance in 2025?
- 6.5 Can Bajaj Finance’s share price reach ₹50,000 by 2025?
- 6.6 What is Bajaj Finance’s revenue growth over the last five years?
- 6.7 What is Bajaj Finance’s profit growth over the last five years?
- 6.8 Is Bajaj Finance a good stock to buy?
- 6.9 What are some factors that can impact Bajaj Finance’s share price in the future?
- 7 What do I like about Bajaj Finance?
- 8 Conclusion