CLSA has reaffirmed its ‘Outperform’ rating on Bajaj Finance and raised the target price to ₹11,000, stating that management clarity brings the focus back to fundamentals. Following the company’s announcement of leadership changes, CLSA believes the stock is now poised for a strong re-rating.
The brokerage highlighted that after several quarters of margin pressure, Bajaj Finance has seen margin stabilisation in the past two quarters. Credit costs have likely peaked and are expected to moderate in FY26, adding to bottom-line momentum. Asset under management (AUM) growth continues to remain healthy, clocking over 25%.
CLSA projects a 26% CAGR in profit after tax (PAT) over the next two years and sees Bajaj Finance as a standout name among NBFCs. With strong growth, profitability, and a robust succession plan in place, the brokerage views the recent market correction as an opportunity for long-term investors.
