Jefferies has reiterated its ‘Buy’ rating on Bajaj Finance, forecasting a 19.5% upside with a target price of ₹9,270. This optimism comes on the back of the company’s solid Q3 performance, where net profit surged 18% year-on-year to ₹43 billion, beating estimates by 5% due to a robust topline.
The financial powerhouse reported strong loan growth of 28%, which fueled a 23% rise in net interest income (NII) and a 17% increase in fee income. Asset quality trends are showing signs of stabilization, and management anticipates credit costs to taper off from Q4, which should ease investor concerns and bolster earnings growth.
Moreover, the CEO succession plan appears to be smooth, with the Deputy CEO expected to step up while Rajeev Jain remains actively involved, ensuring continuity in leadership. With these positive indicators, Jefferies sees Bajaj Finance as a promising bet moving forward.
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