Fed governors may dissent against Powell amid Trump pressure - WSJ’s Timiraos
Investing.com - UBS initiated coverage on Bajaj Housing Finance (BAJAJHFL:IN) with a Neutral rating and a price target of INR135.00 on Friday.
The investment bank noted that Bajaj Housing Finance recorded a strong 37% loan book CAGR over FY19-25 to become India’s second-largest housing finance company in terms of loan book. The company focuses on the prime segment with an average ticket size of Rs4.5m.
UBS forecasts a 24% AUM CAGR for Bajaj Housing Finance over FY25-27, citing sufficient headroom to grow ahead of the market despite the company’s current low single-digit share of total housing loan AUM and disbursement.
The firm flagged near-term margin pressure due to repo cuts and forecasts ROA at 2.0-2.1%, which could limit EPS to a 16% CAGR in FY25-27E. UBS expects ROE to improve based on increased leverage to 14% by FY29E.
UBS believes the current 4.3x 12-month forward P/BV has priced in potential growth along with a scarcity premium, with its INR135.00 price target implying 4.2x FY27E P/BV.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.