New Delhi. Shares of non-banking financial company (NBFC) giant Bajaj Finance witnessed a sharp decline on Tuesday. Even after the second quarter results came as expected, the stock fell by 7 percent. Bajaj Finance shares closed at ₹1,009.1 on NSE, which was ₹75.6 down from the previous closing price. It even slipped below the ₹1,000 level in day trading. However, the stance of most of the brokerages is positive regarding Bajaj Finance shares.
Bajaj Finance has shown strong results for the July-September quarter (Q2 FY26). Consolidated Net Profit of the company increased by 22 percent to ₹ 4,875 crore. At the same time, Net Interest Income (NII) also increased by 22 percent to ₹ 10,785 crore. The company’s assets under management (AUM) increased by 24 percent year-on-year to ₹ 4.62 lakh crore. During this period, the company added 41 lakh new customers and the total customer number reached 11.06 crore.
Impact of reduction in growth guidance
Investors did not like Bajaj Finance’s 1.24 percent increase in Gross NPA and the company’s reduction in its AUM growth guidance for FY26 to 22-23 percent and on Tuesday they started booking profits. As a result, the stock fell face down. After the cut in growth guidance, a question is being raised in the market whether the shares of Bajaj Finance may fall further. However, market experts believe that this decline in the stock may be short term, while the long term outlook of the company remains strong.
Bajaj Finance Share Target Price
According to a report by Moneycontrol, Morgan Stanley has maintained Overweight rating on Bajaj Finance and has set the target price at ₹ 1,195. The report said that investors may be disappointed by the reduced growth guidance for FY26 and stable net interest margins (NIMs). However, the company’s profitability will continue to improve due to reduction in credit costs and operational efficiency. Morgan Stanley believes that the current weakness is a buying opportunity. HSBC has also given a buy call and set the target at ₹ 1,200. The brokerage says that the company’s Q2 EPS (Earnings Per Share) has been in line with expectations. Stable RoA and RoE, better cost-to-income ratio and controlled expenses will provide long-term strength to the company.
Jefferies has also given a target of ₹ 1,270 while maintaining the Buy rating. According to the report, the company’s profit increased by 23 percent year-on-year, which was slightly better than expected. CLSA has given Outperform rating and has set a target of ₹ 1,200. The report said that the company’s performance has been strong on all parameters.
Bernstein, taking a different stance on Bajaj Finance share, has given Underperform rating and has set the target at ₹ 640. The brokerage said in the report that the company’s headline growth is strong, but rising NPAs and expansion-related costs may create pressure. However, the company is controlling its expenses and restructuring the network to maintain profitability.
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