Should investors worry about the slowing AUM growth at Bajaj Finance?

Recent price correction in Bajaj Finance's stock, strong growth outlook, peaking of rates, and potential to enter credit cards market, make risk-reward favourable, analysts said

Investors have been worried about the slow pace of growth at Bajaj Finance for some time now. From a compounded annual growth rate (CAGR) of 40 per cent between FY09-FY22, investors expect the next decade to see asset under management (AUM) growing at around 25 per cent CAGR.

This near 50 per cent drop in the growth rate, however, should not worry investors, said analysts in a post Q4FY23 results note. The non-bank finance company (NBFC), they said, has grown its loan book from Rs 40,000 crore at the start of the previous decade to about Rs 2.5 trillion now,