Morgan Stanley has reiterated its overweight rating on Bajaj Finance with a target price of ₹1,050 per share, implying a potential upside of about 4.1% from the current market price of ₹1,009.00.
The brokerage noted that management has maintained its FY26 loan growth guidance of 24–25% year-on-year. Within this, MSME loan growth was reiterated at 15%, though a cut in this segment is likely to impact assets under management (AUM) by around 100 basis points. Similarly, a cut in the housing finance subsidiary’s loan growth is expected to reduce AUM by around 60 basis points.
Morgan Stanley highlighted that other business segments may offset the impact, with guidance likely to be revisited after Q2 results. It added that Bajaj Finance aims to close FY26 with strong asset quality, which would enable bolder growth into FY27.
Disclaimer: The views and investment recommendations expressed are those of Morgan Stanley. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.