Bajaj Finance share price: There was a huge fall in the shares of Bajaj Finance on Tuesday (11 November). The company’s shares fell by almost 7 percent, even though the company had shown strong profits in the July-September quarter (Q2). That means profits increased, but the stock still fell. Now the question arises, why did this happen?
Actually, this time the company disappointed the investors a bit. Despite the increase in profits, the company reduced its growth target, and said that some problems have started coming in the MSME (Micro, Small and Medium Enterprises) segment. Due to this, concern increased in the market and investors started selling shares.
Bajaj Finance said that its consolidated net profit for the second quarter ending September 2025 was Rs 4,948 crore, which is 23 percent more than last year. At the same time, the company’s net interest income (NII) reached Rs 10,785 crore, which was Rs 8,838 crore last year. That is, the earnings figures looked good, but the other aspect of the picture was a bit worrying.
Bajaj Finance: NPA increased, problem in recovery
The asset quality of the company has weakened slightly. That means bad loans (NPAs) have increased. Gross NPA has increased from 1.06 percent to 1.24 percent, while net NPA has increased from 0.46 percent to 0.6 percent. This indicates that the company is facing some difficulty in recovering the loan.
Not only this, the company has also reduced its credit growth guidance for this year to 22-23 percent, whereas earlier it was 24-25 percent. Bajaj Finance admitted that there has been a slight slowdown in the MSME and two-wheeler loan sectors, hence the company is adopting a strategy to grow the business “with more wisdom and balance” this year.
The company’s management also said that from now on the Net Interest Margin (NIM) may remain stable, as the company will pass on some cost benefits to the customers. At the same time, fee income growth is expected to be 13-15 percent and credit cost is expected to be around 1.85-1.95 percent.
Bajaj Finance: What is the target price of the share?
After this news, brokerage house JM Financial reduced the EPS (earnings per share) estimate of Bajaj Finance by 2-3 percent and fixed the target price of the share at Rs 1,140. He reduced the stock’s rating from BUY to ADD.
At the same time, Motilal Oswal Financial Services said that this quarterly performance of Bajaj Finance has been mixed. The company’s stock is currently trading at 5x P/BV and 26x P/E for FY27. Although the company’s profit growth rate is expected to be around 25 percent in the next three years and ROE (Return on Equity) may reach 22 percent, but the current valuation is already much higher.
Motilal Oswal said, “We do not see any major upside catalyst in the stock at present, hence we are reiterating Neutral rating on it and our target price is Rs 1,160.”
