Morgan Stanley maintains Overweight call on Bajaj Finance, expects up to 21% upside as AUM grows 28.8% YoY

Morgan Stanley has reiterated its Overweight call on Bajaj Finance, setting a target price of ₹9,000 per share, indicating a potential upside of up to 21% from the current price of ₹7,417.60. The company’s assets under management (AUM) grew 5.6% quarter-on-quarter and 28.8% year-on-year, exceeding estimates.

Key points:

• AUM growth: AUM grew 5.6% QoQ and 28.8% YoY, surpassing market expectations.
• Q2 focus: The upcoming Q2 call will focus on management’s confidence in asset quality improvement starting from Q3.
• Credit cost trajectory: Commentary on the future trajectory of credit costs will be crucial.

Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.