Morgan Stanley has reiterated its overweight stance on Bajaj Finance share, setting a target price of Rs 10,500, as it forecasts stable profit growth ahead, while flagging a potential minor compression in loan spreads for FY26.
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Bajaj Housing Finance Ltd (BHFL), a subsidiary, reported PBT growth of 1% QoQ and a strong 47% YoY jump, with PAT rising 7% QoQ.
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For Bajaj Finance (consolidated), Morgan Stanley estimates PBT to grow 4.7% QoQ and PAT to rise 4.2% QoQ.
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The company’s management indicated that in a scenario of a 75 basis points cumulative rate cut with no shift in loan mix, loan spreads in FY26 could compress by 10–15 basis points YoY.
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