JPMorgan has maintained its overweight rating on Bajaj Finance but cut the target price to ₹7,300 from ₹8,000. The brokerage highlighted concerns over credit overshoot and asset quality strain during Q2 FY25. Despite these concerns, loan growth remains strong at 29% YoY, with new business contributing 2-3%.
JPMorgan noted that margins should stabilize as funding costs peak, but cautioned that the business mix could remain adverse in the near term. The brokerage remains overweight on Bajaj Finance but acknowledges ongoing challenges.
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