Analysts Have Made A Financial Statement On Bajaj Finserv Ltd.'s (NSE:BAJAJFINSV) Second-Quarter Report

The second-quarter results for Bajaj Finserv Ltd. (NSE:BAJAJFINSV) were released last week, making it a good time to revisit its performance. It was a workmanlike result, with revenues of ₹374b coming in 2.3% ahead of expectations, and statutory earnings per share of ₹55.00, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bajaj Finserv after the latest results.

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Taking into account the latest results, Bajaj Finserv's nine analysts currently expect revenues in 2026 to be ₹1.41t, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 5.6% to ₹64.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹1.42t and earnings per share (EPS) of ₹66.83 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Bajaj Finserv

The consensus price target held steady at ₹2,221, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Bajaj Finserv, with the most bullish analyst valuing it at ₹2,710 and the most bearish at ₹1,450 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Bajaj Finserv's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that Bajaj Finserv is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bajaj Finserv. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bajaj Finserv's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Bajaj Finserv going out to 2028, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.