Bajaj Finance: Despite gains, risk of slowing consumer demand not priced in

Growth rate seen moderating further given little sign of revival

A recent report by CRISIL stated that retail loan growth, at 12 per cent for the first half of the current financial year, was the slowest in five years for the industry. 

This has had little impact on Bajaj Finance, considered a barometer of consumer demand, which has nearly doubled year-to-date. It has managed to rake in the gains despite its management turning cautious on the underlying demand nearly two quarters ago. Clearly, the Street is throwing caution to the wind. 

Some of these gains may be attributed to the financier’s ability to successfully raise capital. This, analysts at Emkay Global Financial