Bajaj Finance shares rose approximately 5 percent in early trading on Thursday, defying a general market downturn, buoyed by strong earnings growth and enhanced asset quality. The stock ascended to a high of ₹975 from the prior close of ₹930, trading at ₹965.25 on the NSE as of 9:44 am, fueled by reduced credit costs and consistent loan growth.
The company reported a 23 percent year-on-year increase in standalone net profit, reaching ₹4,839.5 crore for the fourth quarter. This growth was supported by robust loan expansion and net interest income, along with decreased provisions for impairment on financial instruments. Assets under management saw a significant increase of approximately 22 percent year-on-year, with credit metrics improving both year-on-year and quarter-on-quarter.
Global brokerages maintained a positive outlook on the stock. Morgan Stanley upheld an overweight rating, projecting a target price of ₹1,120, citing a 26 percent year-on-year rise in adjusted profit before tax, which outperformed estimates due to notably improving credit costs.
Citi upgraded the stock to a buy rating, also targeting ₹1,120, emphasizing a better-than-expected return on assets at 4.6 percent and improved core credit costs. CLSA reiterated an outperform rating with a target price of ₹1,200, highlighting consistent AUM growth and a favorable management outlook on credit costs and recovery in MSME lending.
HSBC maintained a buy rating with a ₹1,100 target price, referring to expectations of a 15-30 basis point decline in credit costs year-on-year in FY27, alongside strong earnings growth visibility. Nomura also kept a buy rating, setting a target of ₹1,140, focusing on healthy asset quality trends and improved provision coverage quarter-on-quarter. Jefferies retained a buy rating, targeting ₹1,210, noting that profit growth exceeded estimates due to lower credit costs and better fee income, while projecting a strong earnings CAGR over the medium term.
JPMorgan held an overweight stance with a target price of ₹1,080, underlining a strong beginning to FY27 with robust loan disbursements and stable asset quality trends. Conversely, Macquarie expressed caution, maintaining an underperform rating with a ₹860 target price, citing concerns regarding elevated valuations and the sustainability of high return ratios.
Among domestic brokerages, HDFC Securities sustained a buy rating, assigning a ₹1,100 target price and describing the quarter as steady, driven by stable growth and improving credit performance. In contrast, Motilal Oswal retained a neutral stance with a target price of ₹1,000, pointing to limited near-term upside despite strong long-term fundamentals and profitability prospects.
Published on April 30, 2026.
