Bajaj Finance Ltd. remains on the brokerage radar post its Q4 earnings, with global firms Jefferies and HSBC maintaining bullish outlooks driven by long-term growth confidence, stable margins, and consistent asset quality.
Jefferies has retained a Buy rating on the stock with a target price of ₹10,440 per share. The brokerage noted that consolidated profit was largely in line with expectations. A key highlight was the management’s use of tax write-backs to create buffer provisions, reflecting a prudent approach amid a shifting macro environment. Jefferies slightly trimmed its near-term growth forecasts and earnings estimates for FY26–27 by 2% to reflect lower-than-expected AUM growth and fee income. However, the firm pointed to stable margins, healthy RoE, and moderation in core credit costs as key positives. The onboarding of the new CEO, while resetting short-term expectations marginally lower, was seen as a credible move for the company’s scale.
HSBC, meanwhile, reaffirmed its Buy call and assigned a higher target price of ₹10,800 per share. The firm believes the earnings inflection story is likely to materialize over FY26–28, with an estimated 25% compound annual growth rate (CAGR) in earnings across that period. While fee growth has been slightly cut, HSBC’s net interest margin (NIM) estimate remains unchanged. The brokerage expects the stock to compound steadily at the pace of earnings growth, underpinned by Bajaj Finance’s strong business fundamentals.
Both brokerages emphasized the company’s continued strength in customer acquisition and cross-sell momentum, which could support valuations despite near-term moderation in growth.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
