New Delhi, April 30 -- Bajaj Finance Ltd stock is down 5% in reaction to its March quarter (Q4FY25) and FY25 earnings, announced after market hours on Tuesday. The long-term target for consolidated return on average assets (RoAA) was cut from 4.6-4.8% to 4.3-4.7% and return on average equity (RoAE) from 21-23% to 19-21%. A closer look at its growth versus its elevated and complex valuation reveals what else could be making investors edgy.

Bajaj Finance is actually a combination of three separate entities - Bajaj Finance standalone and its two subsidiaries - Bajaj Housing Finance (88.75% stake) and Bajaj Financial Securities (100% stake) - so we'll attempt to simplify the valuation.

Also read: TVS Motor posts 75% profit growth, but worri...