Morgan Stanley has reiterated its overweight rating on Bajaj Finance with a target price of ₹1,150 per share, citing a steady second-quarter update and resilient operating performance. The brokerage noted that the company’s AUM grew 24% year-on-year and 5% quarter-on-quarter, in line with expectations.
The firm expects pre-provision operating profit (PPoP) growth of 22% year-on-year and 5% sequentially in Q2FY26, driven by stable net interest income and healthy operating leverage. Morgan Stanley also expects credit costs to remain rangebound, projecting 198 basis points for Q2FY26 and 191 basis points for the full fiscal year.
According to the brokerage, Bajaj Finance’s earnings are likely to compound at 25% in FY26 and 28% in FY27, supported by strong loan growth, disciplined risk management, and continued traction in consumer financing. It believes the company’s diversified business model and robust balance sheet provide visibility for sustained profitability in the medium term.
Disclaimer: The views and recommendations above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
