Why does Bajaj Finance stock have a 24% upside potential?

Brokerage house Emkay Global has given a ‘Buy’ recommendation to shares of Bajaj Finance, which led the company’s share price to increase by around 1% on Wednesday.

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The company’s Buy recommendation comes with a 24% upside potential and a target of Rs. 9000. The current share price of Bajaj Finance is around Rs. 7330+.

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The main reason for this potential is that Bajaj Finance shares are currently undervalued, serving as a great entry point.

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Apart from that, the company is working on implementing strategic plans, which will help it strengthen its position in the market.

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Bajaj Finance is likely to have consolidated AUM CAGR growth of 25% and PAT CAGR growth of 21.4% from FY24 to FY27.

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The challenges faced by Bajaj Finance by RBI and management succession will also be resolved in the next year, which would prove beneficial for investors in the long run.

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