Bajaj Finance’s stock remains in focus as Morgan Stanley has reaffirmed its ‘Overweight’ rating while raising the target price to ₹9,300 from its previous estimate, implying a 19.8% upside from the current market price of ₹7,759.85.
The brokerage highlighted that lower stressed asset formation, which was evident in Q2 FY25, continued in Q3, reflecting improved asset quality. Management has also guided for a further reduction in credit costs in Q4, reinforcing expectations of stronger profitability.
Morgan Stanley emphasized the improved visibility of 25%+ EPS growth in FY26, with its own projections at 29%, assuming macroeconomic conditions remain stable. The firm believes this positions Bajaj Finance as an attractive quality large-cap stock with strong earnings momentum.
Investors will closely watch the company’s ability to sustain its growth trajectory amid evolving economic conditions, with the upcoming quarters crucial in determining its future valuation trajectory.
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