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Bajaj Finance successfully weathered crises like taper tantrum, demonetization, IL&FS turbulence, and COVID-19 better than Indian rivals. -
Exceptional asset quality except during the global financial crisis (GFC). -
BAF gained market share post-GFC by focusing on retail loans like consumer durable, unsecured, and home loans. -
Bajaj Finance aims to expand into microfinance, new car and tractor financing, and gold loans while maintaining a balance in unsecured loans (42-44% of AUM). -
Nomura projects a 27% AUM CAGR over FY23-26F, 10% net interest margin, 1.6% average credit cost, resulting in 25% EPS CAGR, 4.5% RoA, and 24% RoE.
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A key risk is potential conversion into a bank due to size limitations, impacting RoA/RoE and leadership tenure.
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