Shares of Bajaj Finance jumped over 4% in Wednesday’s session despite brokerage firm HSBC lowering its target price amid concerns over the impact of the Middle East conflict on the financial sector.
The stock rose 4.20% to Rs 835.25, gaining Rs 33.70 from its previous close of Rs 801.55. During the session, it traded in a range of Rs 829.60 to Rs 842.05, taking its market capitalization to approximately Rs 5.19 lakh crore. The company currently trades at a price-to-earnings ratio of 28.81 with a dividend yield of 0.53%.
HSBC maintained a ‘buy’ rating on Bajaj Finance but reduced the target price to Rs 920 from Rs 1,110 earlier. The brokerage highlighted that the ongoing Middle East conflict could weaken earnings outlook across financials, impacting demand, growth, and margins.
According to HSBC, liability-side pressures have started to emerge first, while asset-side stress may also appear across multiple lending segments going forward. The brokerage has cut its estimates for assets under management (AUM) growth, margins, and earnings per share (EPS) across the sector.
Despite the cautious outlook, Bajaj Finance remained in focus during Wednesday’s session with strong buying interest.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.