Shares of Bajaj Finance, a prominent non-banking financial company (NBFC), reached an all-time high of ₹1177.60 today, marking a 2.57% increase from its previous close. This surge propelled the company's market capitalization beyond the ₹7 lakh crore milestone, settling at ₹7.29 lakh crore.
The strong buying demand is evident in the stock's technical indicators, with its Relative Strength Index (RSI) at 73.9, indicating an 'overbought' status. The stock is currently trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, reinforcing its bullish momentum. Over the past month, Bajaj Finance stock has gained 14%, and a significant 25.38% in the last three months.
Analysts Raise Price Targets on Strong Performance
Market experts are largely optimistic about Bajaj Finance's trajectory. Muthuselvaraj M, a Research Analyst at Mirae Asset Sharekhan, highlighted the stock's strong bullish chart structure, characterized by a series of higher highs and higher lows. He noted a recent breakout above its previous swing high, suggesting further upside potential. From a technical perspective, Muthuselvaraj anticipates the stock could move towards the ₹1,206–₹1,285 zone in the short to medium term, with ₹1,001 serving as a strong support level.
Global brokerage CLSA reiterated its 'Outperform' rating for Bajaj Finance, raising its target price to ₹1,300 per share. This implies a potential upside of over 23% from its previous closing price. CLSA praised the company's resilience, noting that its quarterly earnings surpassed expectations. The brokerage pointed to a stronger net interest income (NII), higher pre-provision operating profit, and lower-than-anticipated credit costs as key drivers. CLSA also emphasized the significant improvement in asset quality as a major positive, expecting the company to comfortably exceed its full-year credit cost guidance of 1.45-1.60%. Management commentary during post-earnings interactions further reinforced confidence in the company's growth outlook and execution capabilities.
Similarly, HSBC maintained its 'Buy' recommendation and increased its target price to ₹1,270 per share. HSBC described Bajaj Finance's quarterly performance as exceptionally strong across all key operating parameters. The brokerage revised its earnings estimates upward for fiscal years 2027-2029 by 1-6%, anticipating stronger assets under management (AUM) growth, improved net interest margins, and lower credit costs. HSBC concluded that the company's disciplined underwriting, healthy loan growth, and stable margins position it well for sustained earnings momentum in the medium term.