Morgan Stanley has reiterated its overweight rating on Bajaj Finance with a target price of ₹1,195 per share, noting that the company’s strategic focus on artificial intelligence is expected to materially enhance productivity, strengthen underwriting and compress turnaround timelines across key lending segments. According to the brokerage, Bajaj Finance aims to use AI-driven models to reduce credit costs, improve analytical accuracy, and accelerate decision-making as it scales towards a significantly larger loan portfolio.
The firm highlighted that implied AUM and PAT CAGRs for FY25–30 show a slight moderation from prior long-range scenarios, but remain strong and comfortably ahead of most NBFC peers. Morgan Stanley added that the company’s digital adoption momentum, expanding customer base and ability to originate over 100 million loans annually position it well for sustainable, technology-led expansion over the medium term. Despite scaling rapidly, Bajaj Finance continues to target best-in-class asset quality with very low gross and net NPA ratios, reinforcing the brokerage’s confidence in the lender’s long-term profitability trajectory.
Disclaimer: The views and recommendations above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
