[ad_1]
Bajaj Finance share price has plunged over 6% to an intra-day low of Rs 898 on the National Stock Exchange. The stock is among the major losers on Nifty 50. The decline in the share price came after Bajaj Finance posted its quarterly results. The street is worried about concerns in the MSME and auto verticals. However, analysts don’t see this as a major long-term worry.
Here is a look at why brokerages recommend Buy on Bajaj Finance
JM Financial on Bajaj Finance: Maintains Buy
“While we continue to like Bajaj Finance given its ability to deliver sector-leading growth/RoE on a cross-cycle basis, near-term concerns around growth/asset quality and rich valuations might limit upside,” said JM Financial. The brokerage firm maintained its Buy rating on the stock with a target price of Rs 1,000.
The company’s management highlighted slowdown and emerging stress-related concerns in MSME/Auto loans, leading to slight cautiousness on FY26 AUM growth guidance of 24%-25%. JM Financial believes that Q2 to give more clarity.
Further, management guided for NIM improvement of 10 basis points YoY and maintained its earlier guidance on fee income growth of 13%-15% and credit cost in the range of 1.85%-1.95% in FY26.
HDFC Securities on Bajaj Finance: MSME slowdown concerns
HDFC Securities retained its ‘Buy’ call on the stock, with a target price of Rs 985, implying an upside of 9.7% from the current market price.
Bajaj Finance’s Q1FY26 earnings were largely in line with the estimates, with robust AUM growth of 24.6% YoY, and improving operating efficiency, offset by lower other income and high credit costs, said HDFC Securities.
Credit costs were marginally higher as the management indicated stress in the MSME portfolio (12% of AUM) due to the broader macroeconomic slowdown.
“Bajaj Finance’s post-pandemic cross-functional investments are gradually reflecting in increasing throughout and higher efficiency gains, which are likely to sustain over FY26-FY27,” said HDFC Securities.
HDFC Securities said that Bajaj Finance is poised for 24% AUM CAGR over FY26-FY27, with the scale-up of new products, while also simultaneously delivering strong profitability.
Apart from that, the selling pressure mounted all over the Bajaj Group stocks, with Bajaj Finance and Bajaj Finserv being the top losers in the Nifty 50. Bajaj Consumer was affected the most, falling 4.56%, while Bajaj Auto declined 2.7%.
[ad_2]
Source link