Jefferies has maintained its buy rating on Bajaj Finance Ltd (BAF) with a target price of ₹1,270 per share, following Q2FY26 results that came in slightly ahead of its estimates. The brokerage said consolidated profit before minority interest rose 23% year-on-year to ₹49 billion, supported by robust topline growth and resilient margins.
Assets under management (AUM) grew 24% year-on-year, reflecting healthy demand across retail categories. Jefferies said the festive season performed well, but management revised its growth guidance marginally lower by 100 basis points to 22–23%, citing slower trends in SME and housing portfolios.
Credit costs remained elevated during the quarter, though Jefferies expects moderation ahead as portfolio performance improves. The brokerage projects a 23% compound annual profit growth over FY25–28, driven by balanced credit expansion and improving cost efficiency.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
