Shares of Bajaj Finance are drawing strong bullish sentiment from major brokerages following the company’s announcement of key leadership transitions. The board has approved the elevation of Rajeev Jain to Vice Chairman and Executive Director for three years starting April 1, 2025, and Anup Saha as Managing Director for the same term. The move addresses a long-standing overhang on succession and governance.
Bank of America Securities has maintained a Buy rating with a target price of ₹10,500. The brokerage views the management reshuffle as a well-executed plan that offers clarity and stability. It highlighted leadership continuity with Rajeev Jain guiding strategic direction while the new MD builds his track record. BoFA expects earnings momentum to continue, driven by net interest margin recovery and credit costs nearing their peak.
Citi also maintained its Buy rating and raised the target price to ₹10,200. It said the seamless leadership transition significantly reduces management-related concerns. The elevation of Jain and Saha is seen as a signal of strategic clarity and continuity in execution.
Morgan Stanley has an Overweight rating and raised its target price to ₹10,500. According to MS, Jain’s continued involvement boosts investor confidence and puts to rest long-standing uncertainty around leadership. Bajaj Finance now has one of the strongest and clearest investment theses among large-cap financials. Morgan Stanley expects the recent re-rating to sustain, with strong returns ahead.
CLSA maintained its Outperform rating and raised the target to ₹11,000. It cited clarity on succession and renewed investor focus on fundamentals. CLSA noted that margins have stabilized in the last two quarters, credit costs are peaking, and AUM growth remains above 25 percent. It expects a 26 percent CAGR in profit after tax over the next two years.
Jefferies retained its Buy rating with a target price of ₹9,270. It noted that the planned transition ensures continuity in short- and medium-term planning, with Jain continuing to be involved in strategy and investor engagement. With healthy AUM growth and improving asset quality, Jefferies believes valuations will remain supported.
Disclaimer: This article is for informational purposes only and is not a recommendation to buy or sell any stock. Please consult a certified financial advisor before making investment decisions.
