Morgan Stanley has added Bajaj Finance to its Focus List, replacing Reliance Industries, citing strong fundamentals, a tested business model, and favorable macroeconomic conditions. The brokerage remains bullish on large private-sector financials, consumer and industrial stocks, and IT services, recommending them as key investment themes.
Bajaj Finance has been identified as a quality large-cap thematic play, given its established model and strong track record. The company is expected to be a key beneficiary of a recovery in unsecured consumer lending, particularly as credit costs are projected to remain below 200 basis points in FY26. This is expected to boost Bajaj Finance’s EPS growth to over 25% for the fiscal year.
Additionally, the firm is well-positioned to benefit from rising middle-class disposable income, especially following the Union Budget’s focus on boosting consumption and potential interest rate cuts. With its strong fundamentals and historical valuation trends, Morgan Stanley sees further upside potential for Bajaj Finance’s stock.
The brokerage continues to favor private financials, consumer, industrial, and IT stocks, reinforcing its broader investment strategy while making Bajaj Finance one of its top picks going forward.
