CLSA has maintained its outperform rating on Bajaj Finance with a target price of ₹1,150 following management commentary from its latest roadshow. The company reiterated its guidance for mid-20s loan growth in FY26 and the medium term, even as it acknowledged a slowdown in banking credit. Management said SME financing growth is being trimmed to avoid potential asset quality risks, while consumer demand remains strong.
The brokerage highlighted that AI-led initiatives are a key focus, with over 100 use cases set to be deployed in FY26. These are expected to improve operational efficiency, boost cross-selling opportunities, and reduce the cost-to-income ratio. The impact of repo rate cuts has also started to flow through, with management expecting around 10 basis points of net interest margin expansion over the year from current levels.
While management flagged concerns about the second-order impact of tariffs on export-oriented sectors, CLSA said the company’s diversified portfolio, consistent execution, and strong focus on efficiency should ensure sustained profitability. It added that Bajaj Finance remains one of the most attractive large-cap names in financials, with robust growth and return on equity visibility.
Disclaimer: The views and recommendations made in this article are those of CLSA. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
