Bajaj Finserv share price target upped: JM Financial sees stock at Rs 2,250
Valuation analysis places Bajaj Finserv's implied holding company discount at 17%, below the five-year average of 22%, the domestic brokerage said.


- Jun 30, 2025,
- Updated Jun 30, 2025 11:21 AM IST
JM Financial recently convened with the management of Bajaj Finserv and its key subsidiaries in Pune. The meeting emphasised that Bajaj Finserv functions not as a mere holding company but as a unified group of businesses within the financial services sector, mutually reinforcing each other's operations. This collaborative structure allows the company to leverage synergies across its various segments, enhancing overall efficiency and effectiveness, JM Financial said
Valuation analysis places Bajaj Finserv's implied holding company discount at 17%, below the five-year average of 22%, the domestic brokerage said adding that it has revised its target price of Rs 2,250 on the stock, up from Rs 2,150. The breakdown includes Rs 255 per share for the life insurance arm, Rs 322 for the general insurance, Rs 1,607 per share for its stake in Bajaj Finance, and Rs 66 for new ventures. This comprehensive valuation underscores the company's robust financial health.
Bajaj Finserv's insurance subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC), expressed confidence in their operations despite Allianz's exit. They reported no adverse impact on technology or underwriting processes. Both are set for a rebranding exercise following Allianz SE's stake reduction, which is expected to further strengthen their market presence.
Amidst a slowdown in growth in the second half of FY25, BALIC has restructured its product offerings and cost structures to enhance Value of New Business (VNB) margins, aiming to remain competitive with other major insurers. BAGIC continues to prioritise profitability and customer service, with a strong solvency position supporting future tender-driven opportunities. This focus on core strengths ensures resilience in a competitive market.
In terms of new initiatives, Bajaj Finserv Direct has expanded its lending operations, leveraging expertise beyond mere sourcing. Although growth in disbursals and credit card issuances has slowed, reflective of broader asset quality concerns, the company continues to export its technology services effectively. This strategic diversification is crucial for long-term sustainability.
Bajaj Finserv Health is making strides in the healthcare sector by integrating clinics and serving both retail and group health clients through its Third Party Administrator, Vidal Healthcare. The platform collaborates with manufacturers to offer Outdoor Patient Department (OPD) and wellness benefits, centralising money flow within the healthcare domain. These efforts are pivotal in positioning Bajaj Finserv Health as a key player in the healthcare industry.
The recent strategic moves by Bajaj Finserv, particularly the rebranding and focus on profitability, may influence its market positioning positively. These developments are vital for stakeholders as Bajaj Finserv seeks to bolster its presence and maintain competitive advantage in a challenging financial landscape.
JM Financial has retained its 'BUY' recommendation for Bajaj Finserv, reflecting confidence in the company's growth trajectory and strategic initiatives. This sentiment aligns with the broader market outlook, which anticipates steady advancements in Bajaj Finserv's operations and financial health. The continued support from JM Financial is a testament to Bajaj Finserv's strong market fundamentals.
JM Financial recently convened with the management of Bajaj Finserv and its key subsidiaries in Pune. The meeting emphasised that Bajaj Finserv functions not as a mere holding company but as a unified group of businesses within the financial services sector, mutually reinforcing each other's operations. This collaborative structure allows the company to leverage synergies across its various segments, enhancing overall efficiency and effectiveness, JM Financial said
Valuation analysis places Bajaj Finserv's implied holding company discount at 17%, below the five-year average of 22%, the domestic brokerage said adding that it has revised its target price of Rs 2,250 on the stock, up from Rs 2,150. The breakdown includes Rs 255 per share for the life insurance arm, Rs 322 for the general insurance, Rs 1,607 per share for its stake in Bajaj Finance, and Rs 66 for new ventures. This comprehensive valuation underscores the company's robust financial health.
Bajaj Finserv's insurance subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC), expressed confidence in their operations despite Allianz's exit. They reported no adverse impact on technology or underwriting processes. Both are set for a rebranding exercise following Allianz SE's stake reduction, which is expected to further strengthen their market presence.
Amidst a slowdown in growth in the second half of FY25, BALIC has restructured its product offerings and cost structures to enhance Value of New Business (VNB) margins, aiming to remain competitive with other major insurers. BAGIC continues to prioritise profitability and customer service, with a strong solvency position supporting future tender-driven opportunities. This focus on core strengths ensures resilience in a competitive market.
In terms of new initiatives, Bajaj Finserv Direct has expanded its lending operations, leveraging expertise beyond mere sourcing. Although growth in disbursals and credit card issuances has slowed, reflective of broader asset quality concerns, the company continues to export its technology services effectively. This strategic diversification is crucial for long-term sustainability.
Bajaj Finserv Health is making strides in the healthcare sector by integrating clinics and serving both retail and group health clients through its Third Party Administrator, Vidal Healthcare. The platform collaborates with manufacturers to offer Outdoor Patient Department (OPD) and wellness benefits, centralising money flow within the healthcare domain. These efforts are pivotal in positioning Bajaj Finserv Health as a key player in the healthcare industry.
The recent strategic moves by Bajaj Finserv, particularly the rebranding and focus on profitability, may influence its market positioning positively. These developments are vital for stakeholders as Bajaj Finserv seeks to bolster its presence and maintain competitive advantage in a challenging financial landscape.
JM Financial has retained its 'BUY' recommendation for Bajaj Finserv, reflecting confidence in the company's growth trajectory and strategic initiatives. This sentiment aligns with the broader market outlook, which anticipates steady advancements in Bajaj Finserv's operations and financial health. The continued support from JM Financial is a testament to Bajaj Finserv's strong market fundamentals.