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Bajaj Finance shares: Valuation looks attractive but should you buy this NBFC stock?


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  Bajaj Finance shares edged 0.16 per cent lower to Rs 6,924.15 today. The stock has fallen 11 per cent from September 2024 high and delivered a negative return of 5 per cent in the past one year.

The article from Business Today discusses the investment potential of Bajaj Finance, a leading Non-Banking Financial Company (NBFC) in India. Despite a recent dip in its stock price, analysts suggest that Bajaj Finance's valuation looks attractive due to its robust business model, strong growth in assets under management (AUM), and consistent performance in terms of loan growth and asset quality. The company has shown resilience in maintaining its net interest margins and has been expanding its customer base through digital initiatives. However, concerns remain about the competitive landscape, regulatory changes, and potential asset quality issues in the future. While some experts recommend buying the stock citing its long-term growth prospects and the management's track record, others advise caution due to the high valuations relative to its peers and the broader market conditions. The article concludes by suggesting that while Bajaj Finance presents an attractive investment opportunity, potential investors should consider both the growth potential and the inherent risks associated with the NBFC sector.

Read the Full Business Today Article at:
[ https://www.businesstoday.in/markets/stocks/story/bajaj-finance-shares-valuation-looks-attractive-but-should-you-buy-this-nbfc-stock-456911-2024-12-11 ]

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