Following its June quarter results, Bajaj Finance Ltd. has seen a wide divergence in share price targets from over two dozen brokerages. While some project significant upside, others remain cautious, reflecting varied outlooks on the non-banking financial company (NBFC) giant.
Highest and Lowest Projections
Among the most optimistic, CLSA, Citi, and MOFSL have set the highest target price for Bajaj Finance shares at Rs 1,300. This indicates a strong belief in the company's future growth trajectory. Conversely, Ambit Capital holds the lowest target among brokerages, at Rs 815, signaling a more conservative or bearish stance.
The broader market consensus, as tracked by Bloomberg, places the average target price at Rs 1,144.59, suggesting an 8.6 percent potential upside over the next 12 months from current levels.
Brokerage Targets Breakdown
Several other prominent brokerages also weighed in with their projections:
- JPMorgan: Rs 1,295
- BNP Paribas: Rs 1,290
- Jefferies: Rs 1,280
- HSBC: Rs 1,270
- Investec, ICICI Securities, IIFL, Nirmal Bang, JM Financial, Phillip Capital: All set targets at Rs 1,250
On the more cautious side, alongside Ambit Capital, other brokerages with lower targets include:
- Macquarie: Rs 850
- UBS: Rs 910
- Haitong International: Rs 965
- Emkay Global: Rs 1,000
Q1 Performance and Analyst Commentary
Bajaj Finance's first-quarter net profit surpassed Bloomberg consensus estimates by 7 percent, a key factor influencing many positive ratings. The company demonstrated strong asset quality, though management indicated a need to monitor conditions for another quarter before revising guidance.
Analysts noted that the cost of funds movement remained well-controlled, with management anticipating it to be range-bound with a slight upward bias.
HDFC Securities maintained a 'BUY' rating with a target of Rs 1,100, citing Bajaj Finance's robust customer acquisition engine and consistent focus on asset quality, despite current valuations capping immediate upside. Nomura also reiterated its 'Buy' rating with a target of Rs 1,140, appreciating Bajaj Finance among NBFCs.
MOFSL upgraded the stock to 'Buy' with a Rs 1,300 target, believing Bajaj Finance has moved past an earnings normalization phase into a period of structurally higher earnings growth. This outlook is predicated on a favorable credit cycle, multiple growth engines, and potential for earnings upgrades.
Nuvama highlighted Bajaj Finance's diversified portfolio and proactive risk management as key strengths, positioning it to navigate market risks while delivering healthy returns on assets and equity, suggesting a target of Rs 1,175.