Motilal Oswal keeps Buy on Bajaj Finserv as insurance profitability improves

Motilal Oswal retained its Buy rating on Bajaj Finserv with a ₹2,490 target, pointing to improving insurance profitability and growth in health, markets and asset management. Planned wealth, pension and reinsurance businesses could strengthen long-term earnings visibility, while Bajaj Finance remains the core driver.

— Source published Tue, 18 Aug, 2026, 10:08 IST · First seen Tue, 18 Aug, 2026, 10:16 IST · Source NDTV Profit

What happened

Bajaj FinServ · Motilal Oswal retained a Buy on Bajaj Finserv, citing improving insurance profitability, growth in health, markets and asset management, and

Key facts

  • Target price: Rs 2,490

Why this matters

Planned entries into wealth, pension and reinsurance could broaden Bajaj Finserv’s financial-services ecosystem and improve long-term recurring earnings visibility.

What to watch

  • Sustained improvement in general-insurance combined ratio and health segment underwriting profitability.
  • Bajaj Finance maintaining high growth while credit costs remain within guidance.
  • Regulatory approvals, capital commitments or partnerships for wealth, pension and reinsurance ventures.
  • Positive net inflows and rising assets under management in the asset-management business.
  • Material increase in claims severity, adverse health pricing competition or reserve strengthening.
  • Consumer-credit delinquencies or provisioning rising faster than loan growth.
  • Track quarterly combined ratio, loss ratio, renewal pricing and health-insurance premium growth at Bajaj Allianz General Insurance.
  • Monitor Bajaj Finance loan growth, net interest margin, credit costs, asset-quality indicators and regulatory changes affecting unsecured lending.
  • Assess capital requirements, launch timelines and distribution economics for wealth, pension and reinsurance businesses.
  • Watch asset-management net flows and market-sensitive fee income for evidence that non-lending businesses are becoming meaningful earnings contributors.
  • Compare consolidated return on equity and insurance embedded-value growth against peers to test whether a premium valuation is justified.