Bajaj Finance share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Bajaj Finance share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Bajaj Finance share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Bajaj Finance: Company Profile
Bajaj Finance (BFL) is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI). It is a subsidiary of Bajaj Finserv. The company is engaged in the business of lending and acceptance of deposits. The company has a diversified lending portfolio across retail, SMEs, and commercial customers with a significant presence in urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers.
The company has implemented various Machine Learning (ML) models in addition to classical logistic regressive models. It is also investing deeply in Artificial Intelligence (AI) for new acquisition and propensity management. These state-of-the-art technologies enable decision engines with real-time processing capabilities. These also enable unique customer propositions like ‘get now’ and ‘straight through processing’ to constantly push towards a smoother and frictionless experience for its customers. While doing so, BFL is conscious of customers’ privacy and ensures customer consent is obtained for any cross-sell offerings.
Bajaj Finance has been at the forefront of technology adoption among NBFCs and has continuously leveraged existing and emerging technologies to launch new products, enhance customer acquisition and servicing processes along with simplifying the back office. In doing so, it has invested in tools, technologies, and practices for robust and expeditious ‘Development-toOperations’ implementation to enable the delivery of applications and services at a high velocity. To facilitate rapid development and operational use of technology, BFL has restructured its technology organization by hosting development, operations, quality assurance, and security teams in a single unit to deliver fully integrated and tested application lifecycles.
Business area of the company
Bajaj Finance is one of the largest players in the burgeoning consumer finance segment in India and a pioneer in introducing interest-free EMI finance options in many categories, ranging from consumer durables to lifestyle products to groceries. Apart from consumer finance, the company also has substantial business penetration in SME, commercial and rural lending. It has deeply invested in Application Programme Interface (API) to integrate specialized applications with customer-facing interfaces like web portals, app infrastructure, and BOTS onto a microservices architecture supported by the platform as a service (PaaS) infrastructure.
Share holding Pattern
Assets Under Management
Bajaj Finance Share Price Target 2022
Bajaj Finance is present in 2,988 locations across the country, including 1,690 locations in rural / smaller towns and villages. It focuses on six broad categories: (i) consumer lending, (ii) SME lending, (iii) commercial lending, (iv) rural lending, (v) deposits; and (vi) partnerships and services. The Company had to steer through a difficult year due to the COVID-19 pandemic.
Having recorded envious performance metrics over the last 12 years from FY2009 to FY2020 with compounded annual growth rate (CAGR) of 45% in its consolidated AUM and 58% in its consolidated profit after tax, BFL delivered marginal growth in its consolidated AUM of 4% and degrowth in its consolidated profit after tax of 16% while ensuring adequate loan loss provisioning for risks emanating from COVID-19 induced stress. Despite a significantly elevated level of losses in FY2021, the Company delivered a return on assets and a return on equity of 3.1% and 12.8% respectively on a consolidated basis.
In this exceptional year of lower acquisition volumes, higher liquidity buffers, and increased recovery costs, Bajaj Finance has once again demonstrated the resilience of its business model which generates strong pre-impairment profitability to absorb higher losses resulting from a crisis. The Company remains well-capitalized with a capital-to-risk weighted asset ratio (CRAR) of 28.31% as of 31 March 2021.
It remains among the best capitalized large NBFCs in India. In the face of the pandemic, the Company swiftly evolved a revised two-pronged approach that focused on: (i) conservation and prudence, and (ii) capitalizing on the opportunity provided by the disruption to completely transform its business model. Conservation and prudence encompassed capital management, maintaining abundant liquidity, reducing operating expenses, expansion of collections and servicing capability, strengthening of underwriting norms, and a very sharp view on risk metrics.
Bajaj Finance maintained a conservative stance on volumes as post-lockdown restrictions were gradually lifted till August 2020 given extended moratoriums, disruption in economic activity, weakened portfolio quality and collections, and absence of updated customer bureau data. The Company staggered its volume revival over a period by business portfolios, as each business required different levels of calibration. This will have a positive impact on Bajaj Finance share price target 2022.
On the liability side, the Company continued to maintain higher liquidity buffers to counter reduced EMI inflows induced by moratoriums and continued contractual liability for repayments. It was only when market conditions stabilized in the third quarter that BFL started to wind down the excess liquidity buffer. While maintaining higher liquidity buffers, the Company also kept a strong vigil on its cost of borrowings resulting in a decrease of 55 bps over FY2020. As of 31 March 2021, Bajaj Finance consolidated borrowings stood at Rs 131,645 crore. By considering all these factors, Bajaj Finance share price target for 2022 is Rs 7,200.
|Bajaj Finance Share Price Target 2022|
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Bajaj Finance Share Price Target 2023
Bajaj Finance is one of the largest and most diversified NBFCs in India. It has the experience of working with approximately 48.6 million customers since it started its transformational journey in FY2008 from a mono-line captive lender to a diversified financial service business. During this period, BFL expanded its footprint to 2,988 locations with a distribution network of over 110,300 points of sale and created a presence in the digital space.
The Company was among the early movers to transit to digital processes in the financial services industry. It had already moved from ‘Physical’ to ‘Phygital’ in a seamless manner and has embarked to move to the last phase, namely ‘Digital’, in the last three years. In its long-range planning exercise in November 2019, the Company has imagined a completely new way of conducting business and moving to provide financial products and services to its 48.6 million existing customers in a seamless manner by creating an ‘omnichannel’ framework. The omnichannel model would provide flexibility to the customer to move between online to offline and vice versa in a frictionless manner.
Earlier, Bajaj Finance had envisaged a four-year execution timeline. The Company has seized the opportunity provided by the pandemic-induced transition to the digital world to expedite its business transformation process. It plans to complete this transformation process in a phased-wise manner between July 2021 and October 2021.
This business transformation focuses on building an ‘omnichannel’ model to deliver significant business velocity, reduction in operating costs, and significant improvement in customer experience. This model, with an integrated offering of products and services, will enable BFL to become a ‘moment of truth’ company for its customers. In addition to business transformation, the Company also resorted to ‘Zero-Based Budgeting’ to reimagine all its businesses and functions and sharply reduce its operating cost. This will have a positive impact on Bajaj Finance share price target 2023.
Business transformation requires significant changes in operating processes and the core technology stack of the Company. These are detailed below. Bajaj Finance is developing five proprietary marketplaces. These involve: (i) the ‘EMI store’; (ii) the ‘Insurance Marketplace’; (iii) the ‘Investment Marketplace’; (iv) ‘BFL Health’; and (v) the ‘Broking App’ with the help of group companies. These five apps will provide customers with an option to review, compare and buy a host of financial products and services across electronics, insurance, investments, and health category.
Having received approval for running its own wallet business, Bajaj Finance has developed a wallet application called ‘Bajaj Pay’. This will offer an integrated payment solution comprising of UPI, PPI, EMI card, and credit card to its customers. The Company will start offering ‘Bajaj Pay’ to its customers in the first quarter of FY2022. Bajaj Finance is also developing a ‘Bajaj Pay’ for merchants. This should broaden the payment solution offering of the Company to its approximately 98,300 merchants, and enable higher growth and larger market shares.
The Company plans to partner with 25+ adjunct app ecosystems which have related products or services offered for its customers. These apps will provide adjacency to Bajaj Finance core offerings, and thus increase the ‘customer stickiness’. It is developing and significantly transforming four productivity apps: (i) the ‘Sales One’ app; (ii) the ‘Merchant’ app; (iii) the ‘Collections’ app; and (iv) the ‘Partner’ app. These apps will significantly improve the productivity and efficiencies of employees, channel partners, and the merchant ecosystem.
By considering all the above-mentioned factors, Bajaj Finance share price target for 2023 is Rs 8,100.
|Bajaj Finance Share Price Target 2023|
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Bajaj Finance Share Price Target 2024
Bajaj Finance continued to be the dominant lender for consumer electronics, furniture, and digital products in India and financed 8.9 million consumer electronics and digital products purchases in FY2021. This segment saw some shift in consumer preferences as a result of changing lifestyles amidst the pandemic. Increased demand for dishwashers and electronic products enabling connectivity was palpable.
However, the supply of television panels was impacted between April to December 2020, initially on account of supply disruptions caused by lockdown and later owing to border tensions between China and India. The traditional April–June surge in demand for air conditioners did not materialize due to lockdowns. In the current year till December 2020, the import of LCD panels was lower by 44% as compared to the same period of the previous year.
Bajaj Finance unique Existing Member Identification (EMI) card, with about 23.8 million cards in force, enables customers to avail of instant finance after the first purchase in over 98,300 points of sale. In FY2021, EMI cards enabled the Company to finance over 8.7 million purchases across all sales finance categories: consumer electronics, digital products, lifestyle products, lifecare, e-commerce, and other retail spending.
The Company launched its health EMI card product which provides customers with features and benefits like higher financing limits; EMI facility at multi-specialty hospitals; discounts on medicines and medical tests; and various other wellness benefits. The Company distributed 1.1 million health EMI cards in FY2021. Bajaj Finance share price target for 2024 is Rs 9,050.
|Bajaj Finance share price target 2024|
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Bajaj Finance Share Price Target 2025
Bajaj Finance remained the largest financier of Bajaj Auto motorcycles and three-wheelers in FY2021. There was an increased demand for personal mobility during the pandemic. However, BFL chose to remain cautious in view of increased credit cost during the pandemic and tightened its credit norms on new acquisitions to acquire better customers.
It financed the purchase of over 614,000 motorcycles and about 59,300 three-wheelers in FY2021. This constituted over 34% of domestic sales of Bajaj motorcycles and 54% of domestic sales of Bajaj three-wheelers. BFL’s lifestyle financing business is inherently based on discretionary spending and, hence, saw muted demand. It financed approximately 288,000 transactions in FY2021, which represented a de-growth of 47% versus the previous year.
Given the widely distributed nature of the business and relatively higher ticket spending compared to other sales financing businesses, BFL has maintained a cautious stance regarding this specific portfolio. The Company finances its existing EMI card customers for their purchases through e-commerce platforms. Here, BFL expanded its online relationships from 33 to 74 partners. Despite the dominance of e-commerce platforms during the pandemic, the Company remained cautious in this line of business and financed about 1.7 million transactions in FY2021 — representing a de-growth of 38% versus the previous year.
The Company made the offering even more secure and frictionless by enabling customers to use their mobile number and OTP instead of a 16-digit EMI Card number. The retail spends financing business offers easy installment options to customers for small-ticket purchases like fashion, eyewear, cycles, insurance, tyres, car accessories and servicing, and small appliances.
During the year, the Company has reoriented this business to focus on fewer geographies, relatively large format distributors and higher ticket spends which are more economically viable. This business is now operational in 145 locations with a footprint of over 14,300 partner stores across India. BFL financed nearly 344,000 purchases in FY2021 compared to around 1,955,000 in FY2020. Bajaj Finance share price target for 2025 is Rs 10,200.
|Bajaj Finance share price target 2025|
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Bajaj Finance Share Price Target 2030
The Company maintained a cautious stance across all its B2C businesses till Q3 FY2021 due to an increase in delinquencies, a higher level of EMI moratoriums, and the absence of updated bureau data. It started to gradually rebuild its volumes only from the latter part of Q3 after the post-EMI moratorium performance became visible and bureau information went fully onstream.
The personal loan cross-sells (PLCS) business is a pre-approved loan origination program for existing customers of BFL. It relies on risk analytics, campaign management, and a digital acquisition strategy. This business has an optimal mix of salaried and self-employed customers. The PLCS business was fully stopped in the first quarter and gradually started in the second quarter with tighter credit norms. As a result, the AUM for the business de-grew in FY2021 by 10% over FY2020 to 17,209 crore.
The business is currently recovering to its pre-pandemic volumes. Salaried personal loans (SPL) are offered to affluent salaried customers with annual gross earnings of over 600,000. The SPL business AUM grew by 7% over FY2020 to ` 12,101 crores. SPL saw a much faster recovery in portfolio quality and volumes compared to other businesses.
SME lending offers unsecured and secured loans to small businesses. SME lending consists of working capital loans and term facilities to SMEs, MSMEs, and professionals. Secured loans to SME and MSME customers are offered against their home, office, or four-wheeler. The SME segment was expected to witness severe disruptions on account of the pandemic-induced economic slowdown.
However, recognizing that this sector provides the largest employment outside the agriculture sector, the Government of India carved out a special Emergency Credit Line Guarantee Scheme (ECLGS) to provide top-up financing to mitigate the disruptions caused to their working capital cycles. This scheme enabled the SME sector to service its financial obligations and remain liquid — leading to a much lower loss for the financial system than anticipated. Bajaj finance disbursed 934 crores across 23,703 customers under ECLGS.
Bajaj Finance accepts deposits from retail and corporate clients. The deposits book in FY2021 increased to 25,803 crores, representing a growth of 20%. BFL’s deposit book now contributes to 26% of its standalone borrowings and 20% of its consolidated borrowings as of 31 March 2021, compared to 21% and 17%, respectively, as of 31 March 2020. The Company has been increasing its reliance on retail deposits which are more sticky than corporate deposits. To provide retail customers an option to place deposits online, BFL launched its digital deposit sourcing platform in the current year.
Retail deposits grew 44% year-on-year to 18,961 crore and corporate deposits book de-grew by 18% to ` 6,842 crore. Retail deposits now contribute to 73% of total deposits, versus 61% as of 31 March 2020. As on date, BFL has 56 dedicated FD branches across five cities. It plans to continue to grow the contribution of its deposits book to reduce dependence on wholesale funding. By considering all these factors, Bajaj Finance share price target for 2030 is Rs 19,800.
|Bajaj Finance Share Price Target 2030|
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Bajaj Finance Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|Bajaj Finance share price target 2022||Rs 7,200|
|Bajaj Finance share price target 2023||Rs 8,100|
|Bajaj Finance share price target 2024||Rs 9,050|
|Bajaj Finance share price target 2025||Rs 10,200|
|Bajaj Finance share price target 2030||Rs 19,800|
Frequently Asked Questions
Is Bajaj Finance share good for long term investment?
Yes, Bajaj Finance is one of the best company and Bajaj Finance is very strong company in terms of financials and fundamentals.
Bajaj Finance share price target?
Bajaj finance share price target for 2022 is Rs 7,200, Bajaj Finance share price target for 2023 is Rs 8,100, Bajaj finance share price target for 2024 is Rs 9,050, Bajaj finance share price target for 2025 is Rs 10,200, and Bajaj finance share price target for 2030 is Rs 19,800.
Bajaj Finance share price target 2022?
Bajaj finance share price target for 2022 is Rs 7,200.
Bajaj Finance share price target 2025?
Bajaj finance share price target for 2025 is Rs 10,200.
Bajaj Finance share price target 2023?
Bajaj Finance share price target for 2023 is Rs 8,100.