Bajaj Finserv Ltd. Just Recorded A 13% Revenue Beat: Here's What Analysts Think

Bajaj Finserv Ltd. (NSE:BAJAJFINSV) shareholders are probably feeling a little disappointed, since its shares fell 6.2% to ₹1,707 in the week after its latest second-quarter results. Bajaj Finserv beat revenue forecasts by a solid 13% to hit ₹337b. Statutory earnings per share came in at ₹50.70, in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Bajaj Finserv

Taking into account the latest results, the current consensus from Bajaj Finserv's seven analysts is for revenues of ₹1.32t in 2025. This would reflect an okay 6.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 25% to ₹66.51. In the lead-up to this report, the analysts had been modelling revenues of ₹1.29t and earnings per share (EPS) of ₹65.41 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹1,849, implying that the uplift in revenue is not expected to greatly contribute to Bajaj Finserv's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Bajaj Finserv at ₹2,350 per share, while the most bearish prices it at ₹1,310. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bajaj Finserv shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bajaj Finserv's past performance and to peers in the same industry. We would highlight that Bajaj Finserv's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.6% per year. So it's pretty clear that, while Bajaj Finserv's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Bajaj Finserv going out to 2027, and you can see them free on our platform here.

Even so, be aware that Bajaj Finserv is showing 3 warning signs in our investment analysis , and 2 of those are a bit unpleasant...

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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.