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Bajaj Finance - Bajaj Finserv's AMC Licence To Benefit Entire Group: Motilal Oswal

Bajaj Finance - Bajaj Finserv's AMC Licence To Benefit Entire Group: Motilal Oswal

<div class="paragraphs"><p>A man holds two thousand and five hundred Indian rupee banknotes in Mumbai, India&nbsp; (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A man holds two thousand and five hundred Indian rupee banknotes in Mumbai, India  (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Bajaj Finserv Ltd. has got an in-principle approval from Securities and Exchange Board of India for sponsoring a mutual fund.

While the opportunity is huge, given the under penetration and financialisation of savings in the country, the competitive intensity in the industry is high with 44 players.

Bajaj Finserv has inherent advantages in its business model, given its presence in the retail finance, life insurance, general insurance, and securities businesses.

Strong brand presence and wide distribution reach are key pillars for garnering assets under management, where Bajaj Allianz General Insurance Co., Bajaj Allianz Life Insurance Co., and Bajaj Finance Ltd. have proved their expertise.

Cross-sell to the existing customers of these businesses is a huge opportunity.

Barring any new Covid-related disruptions, we expect Bajaj Finance to deliver ~21% AUM growth in FY22E and 25% compounded annual growth rate thereafter.

Click on the attachment to read the full report:

Motilal Oswal Bajaj Finance Company Update.pdf

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