Top stocks to buy today, Sept 16: Analyst bets on Bajaj Finserv, Blue Jet

Stocks to buy today: Bajaj Finserv combines strong execution, diversified financial engines, and emerging growth platforms, while Blue Jet has built a customer base, supported by multi-year contracts

Stock Recommendations

Bajaj Finserv (BFS) – ADD

CMP: ₹2,080

FV: ₹2,315

Support: ₹2,050/2,010

Resistance: ₹2,125/2.175

 

Bajaj Finserv (BFS) is one of India’s leading diversified financial services groups with interests spanning lending, insurance, asset management, broking, health-tech and fintech platforms. Through its flagship subsidiaries ; Bajaj Finance (consumer and SME lending, housing finance), Bajaj Allianz General Insurance (BAGIC), Bajaj Allianz Life Insurance (BALIC) and emerging businesses like Bajaj Finserv Health, Bajaj Finserv Direct and Bajaj AMC, the company addresses the full financial lifecycle of individuals and enterprises.

 

BFS caters to over 130 million customers through a wide distribution network of 4,000+ locations and 550,000+ distributors. Its lending arm, Bajaj Finance, is India’s largest and most profitable NBFC with a $47.9 billion AUM and 100 million customer franchise. Bajaj Housing Finance is amongst the fastest growing HFCs with 29 per cent AUM CAGR and industry-leading profitability. In insurance, BAGIC is the 3rd largest general insurer with superior combined ratios and ROEs, while BALIC has delivered a 38 per cent CAGR in Value of New Business over five years. Emerging platforms like Bajaj Finserv Health and Direct strengthen customer engagement across health, wealth and digital services.

 

 

Bajaj Finserv’s consolidated performance remains strong, with FY25 revenue of $12.7 billion and PAT of $1.0 billion, translating into a 20 per cent CAGR in income and 18 per cent CAGR in net worth over the past decade.

 

The core thesis rests on (1) sustained leadership in lending with best-in-class asset quality, (2) improving profitability in insurance, aided by margin expansion at BALIC and superior underwriting at BAGIC, (3) Value from emerging businesses (health-tech, marketplace, AMC), and (4) robust digital and AI-driven transformation enhancing scalability and efficiency. Valuation comfort stems from its Sum-of-the-Parts structure, where Bajaj Finance accounts for ~75 per cent of value, while insurance and new businesses provide incremental upside.

 

In summary, Bajaj Finserv combines strong execution, diversified financial engines, and emerging growth platforms, making it a compelling play on India’s long-term financialisation theme.   

 

Blue Jet – ADD

CMP: ₹714

FV: ₹900

Support: ₹705/670

Resistance: ₹744/780

 

Blue Jet is a niche specialty pharma ingredient and intermediate company, offering niche products targeted toward innovators and MNC generic companies. Since its incorporation in CY1968, it has established a CDMO business model with specialised chemistry capabilities in contrast media intermediates and high-intensity sweeteners. Over the years, Blue Jet has built a customer base, supported by multi-year contracts. Its product capabilities across the pharma and healthcare categories have evolved with its customers’ needs, supported by its manufacturing capabilities and technology-led product development. As on 1HFY24, Blue Jet had a base of 600+ customers in 35 countries.

 

In the contrast media segment, after a 16 per cent yoy decline in FY2025 sales, we expect a steady uptick in the key product, ABA HCl, in FY2026E. We expect commercial supplies of iodinated ABA HCl and gadopiclenol to drive ~19 per cent contrast media sales CAGR over FY2025-28E on a low base. Within PI and API, the bempedoic acid intermediate has witnessed robust traction after incremental capacity came onstream in 3QFY25. The sales ramp-up is visible for the innovator, Esperion, as well .

  Blue Jet reported a third consecutive quarter of lofty topline growth, buoyed by continued scale-up of bempedoic acid’s intermediate sales in 1QFY26. The blip in the result was a meaningful decline in gross margins due to reduced inventory and a lower CM sales mix. Even as we bake in a steady uptick in ABA HCl sales in FY2026E, we expect launches of gadopiclenol and iodinated ABA HCl to be key growth drivers in FY2026/27E. Accordingly, we bake in robust Ebitda/adjusted EPS CAGRs of 33 per cent/29 per cent over FY2025-28E. The other new projects (forward integration, new generation sweetener and GLP-1) could provide a further upside risk to our earnings estimates in FY2027/28E. We roll forward to September 2027E and raise our target EV/Ebitda multiples for PI and APIs to 18X (17X earlier) on higher growth visibility. Accordingly, we derive an FV of ₹930.  (Disclaimer: Shrikant Chouhan is head of equity research at Kotak Securities. Views expressed are his own.)