Add Bajaj Finance Ltd for the Target Rs.925 by Emkay Global Financial Services Ltd
Management rejig: Rajeev Jain is MD, as Anup Saha resigns
In a swift development, Anup Saha, BAF’s Managing Director, tendered his resignation today, with the Board promptly accepting it along with appointing Rajeev Jain, the former MD and current VC, as the MD till the end of his ongoing VC term (31-Mar-2028). Media reported (Read: https://tinyurl.com/nwcrexf4) Saha as one of the three names recommended by IndusInd Bank to the RBI for the former’s CEO position. Against this backdrop, this development does not come as a complete surprise to investors and could possibly lead to a positive reaction by BAF shares in the immediate term, as it provides clarity about Jain being the MD for nearly three more years. However, over the medium term, this development could potentially raise some concerns regarding the management succession plan at BAF, as Saha was groomed internally for over 7 years to take over the leadership and has stepped down in less than two quarters. We have an ADD on the stock for now, with Jun-26E TP of Rs925; we shall revisit our estimates and rating post Q1FY26 results, scheduled on 24-Jul-2025.
Sharp turn of events leading to continuity of leadership in capable hands
In a sharp turn of events today, Anup Saha, BAF’s Managing Director, resigned from his position, with the Board appointing Rajeev Jain, current Vice Chairman and former MD, as the new MD till his current VC term ends on 31-Mar-2028. Given that Saha’s name has been floating in media circles as one of the three recommendations for the position of IndusInd Bank CEO, his resignation does not come as a surprise. However, his immediate replacement with Rajeev Jain—one who is credited with the meteoric turnaround and rise of BAF from a captive 2/3W financier to a formidable diversified NBFC—for a near 3-year term has come as a great comfort for investors.
Near-term clarity and continuity; succession plan back to BAF’s table
Given Jain’s credentials and investor belief in him, BAF shares are likely to see a positive reaction in the immediate term, as he takes over officially as MD, once again. Jain has anyway been with BAF in his capacity as Vice Chairman and Executive Director, and hence his continuity is not an addition to BAF; however, the certainty and clarity with which Jain has been reappointed as MD for the next ~3 years will be cheered by investors, in our view. While the near-term management continuity is likely a relief for investors, the management succession plan is back at the table for the Board. Against the backdrop of BAF continuing to gain size and its possible transition to becoming a bank, at some stage post-CY28, focus on the succession planning is bound to return; for now, Jain coming back to the helm lends huge support to BAF.
We will revisit our rating and estimates post Q1 results scheduled on 24-Jul
We have an ADD on BAF as of now, with Jun-26E TP of Rs925. We shall revisit our rating and estimates post Q1 results, scheduled on 24-Jul, with the results call planned for 6:30PM IST. Registration Link: https://tinyurl.com/Chorus-Diamond-Pass
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