Bajaj Fin faces valuation hurdle

Turning sour Bajaj Finance's credit cost has surged lately, weighing on profit growth

- Manish Joshi

Bajaj Finance Ltd stock is down 5% in reaction to its Q4FY25 and FY25 earnings, announced after market hours on Tuesday. The long-term target for consolidated return on average assets (ROAA) was cut from 4.6-4.8% to 4.3-4.7% and return on average equity (RoAE) from 21-23% to 19-21%. A closer look at its growth versus its elevated and complex valuation reveals what else could be making investors edgy.