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Bajaj Finance share price soars 7% following RBI ban reversal: Should you buy?
Bajaj Finance share price: Brokerages noted the early resolution of RBI's restrictions in less than 6 months.
Bajaj Finance share price: Shares of Bajaj Finance were up 7.5 per cent today at ₹7,400 per share as the Reserve Bank of India (RBI) lifted curbs on its two digital lending products - 'eCOM' and online ‘Insta EMI Card’. Brokerages noted the early resolution of RBI's restrictions in less than 6 months and said that this would boost investor confidence going ahead.
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What Jefferies said on Bajaj Finance?
Jefferies maintained their 'buy' rating on Bajaj Finance with a target price of ₹9,260 per share- an upside of 34 per cent from current levels.
"Earlier, we saw a 10-percent impact on new loans booked and a 4-percent dent on consolidated profit-before-tax (PBT) in Q4. However, this RBI's ban removal improves growth visibility and we see a 24-percent profit compounded annual growth rate (CAGR) over FY24-27," the brokerage firm said.
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What Citi said on Bajaj Finance?
Citi retained 'buy' rating on Bajaj Finance and put a target price of ₹8,675 per share while noting, “The management remains committed to avoiding recurrence of regulatory restrictions, which will improve visibility going ahead."
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What Emkay said on Bajaj Finance?
Emkay said that the lifting of this ban would result in higher customer acquisition, adding, “The early resolution of the restriction increases confidence on the FY25 outlook and raises hopes of approval by the RBI for renewal of Bajaj Finance's co-branded credit card with RBL Bank in December 2024. We keep our FY25-27 estimates unchanged and reiterate our 'buy' rating on the stock, with unchanged target price of ₹9,000 per share.”
