Many reasons why Bajaj Finance stock will remain an outperformer

Strong loan growth thanks to increasing aspirational buyers and healthy asset quality could keep story intact

Trading at about Rs 11 apiece and with thin volumes, Bajaj Finance was a neglected, unfavoured stock 10 years back. Today, just a few points shy of the Rs 3,000-mark, the country’s leading consumer goods lender has transformed itself as the most sought-after scrip in the financials space. What’s more, despite the recently gone by June quarter (Q1) being a tough one for the non-banking finance companies (NBFCs) due to some instability in asset quality and adoption of new accounting norms, Bajaj Finance outperformed the pack maintaining its industry-best return on assets at 3.6 per cent. The 80 per cent