Bajaj Finance’s acquire and cross-sell strategy to be key growth driver in FY24, says Motilal Oswal

Motilal Oswal Financial Services reiterated its optimistic outlook for Bajaj Finance, citing the lender’s ambition to become a financial services provider that is “pervasive” across multiple consumer touchpoints. use.
Bajaj Finance aims to assert its dominance across physical, app-based, web, social and virtual channels.
The core of Bajaj Finance’s omni-channel strategy lies in providing a payment solution, which is expected to drive higher customer engagement and retention levels across the world, said Motilal Oswal analysts. the company’s new digital platforms”.
In the current financial year, Bajaj Finance plans to accelerate the execution of its omnichannel strategy by expanding its presence through the opening of 400-450 additional locations nationwide. This will lead to a significant increase in business volume, an improved customer experience, and a more profitable operating structure. Bajaj Finance predicts greater customer acquisition, better customer loyalty, increased opportunities for upselling, and improved margins.
“The ‘buyback and tie-up’ approach (in terms of payments, loans, deposits, insurance and investments, derived from BAF’s experience with existing customers with significantly lower credit risk) also will be the main growth driver in fiscal year 2024,” the brokerage said. speak.
Based on that, it models a compound annual growth rate (CAGR) in assets under management (AUM) of approximately 29% for the period from Fiscal Year 23 to Fiscal Year 25E, targeting profit on equity (RoE) sustainable at 25%.
It has a “buy” rating on the stock, with a target price of Rs 8,800, based on a valuation of 6.5 times book value per share FY25E. As of 9:30 a.m., shares were trading at Rs 7,322.05 on the National Stock Exchange (NSE), down 0.89% from the previous closing price.