Bajaj Finance Limited (BFL)
Value Pick Best Share to buy for long term
Investment Thesis
Bajaj Finance Limited ( BSE: 500034 NSE: BAJFINANCE ) stands as a market leader in the non-banking financial sector (NBFC), demonstrating consistent growth, innovation, and adaptability. The company’s transition into “BFL 3.0,” a FINAI company, emphasizes AI integration across operations, which is expected to drive significant operational efficiency, cost savings, and improved customer engagement. With an ambitious target of achieving ₹4 lakh crore AUM by FY25 and a long-term vision of reaching ₹5 lakh crore AUM by FY29, BFL is well-positioned to sustain its industry dominance.
Key Financial Metrics
Market Cap
₹4,44,569 Cr
Stock Price
₹7,182
ROE
22.1%
ROCE
11.9%
Additional Financial Indicators
Future Growth Drivers
AI-Driven Transformation
Implementation of AI across operations with projected annual savings of ₹150 Cr from FY26, enhancing underwriting processes and customer experience through personalized recommendations.
Customer Expansion Strategy
- Current customer base: 92.1 million
- Target by FY29: 200+ million customers
- Focus on underrepresented geographies (UP, Bihar)
- Enhanced MSME segment penetration
Green Finance Initiatives
Commitment to finance ₹2,000 Cr worth of solar and EV projects by FY26, aligning with India’s sustainability goals and tapping into emerging markets.
Technology & Infrastructure
Digital Transformation
- Multi-cloud orchestration implementation
- Blockchain integration for secure transactions
- 40 critical applications to become cloud-agnostic
- Zero Trust security framework implementation
Financial Projections
FY29 Targets
Valuation & Investment Recommendation
Valuation Metrics
Investment Rating: BUY
Time Horizon: Medium to Long Term
BFL’s leadership position, technological innovation, and expansion into high-growth segments make it an attractive investment opportunity at current levels.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own analysis or consult a financial advisor before making investment decisions. Past performance is not indicative of future results.
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