Bajaj Finance shares surged around 5 per cent in early trade on Thursday, bucking a broader market decline, as strong earnings growth and improving asset quality lifted investor sentiment. The stock climbed to a high of ₹975 from the previous close of ₹930 and was trading at ₹965.25 on the NSE around 9.44 am, with gains driven by lower credit costs and steady loan growth.

The company posted a 23 per cent y-o-y increase in standalone net profit at ₹4,839.5 crore for the fourth quarter, supported by healthy expansion in loans and net interest income, along with lower provisions for impairment on financial instruments. Growth remained steady with assets under management rising around 22 per cent y-o-y, while credit metrics improved on both y-o-y and q-o-q basis.

Global brokerages remained largely constructive on the stock. Morgan Stanley maintained an overweight rating with a target price of ₹1,120, noting adjusted profit before tax rose 26 per cent y-o-y and beat estimates, aided by sharply improving credit costs.

Citi upgraded the stock to buy with a target price of ₹1,120, highlighting better-than-expected return on assets at 4.6 per cent and improved core credit costs. CLSA reiterated an outperform rating with a ₹1,200 target price, citing steady AUM growth and a positive management outlook on credit costs and MSME lending recovery.

HSBC maintained a buy rating with a ₹1,100 target price, pointing to guidance of a 15–30 basis points decline in credit costs y-o-y in FY27 and strong earnings growth visibility. Nomura also retained a buy rating with a ₹1,140 target price, emphasising healthy asset quality trends and improved provision coverage q-o-q. Jefferies kept a buy rating with a ₹1,210 target price, noting profit growth beat estimates on lower credit costs and better fee income, while projecting a strong earnings CAGR over the medium term.

JPMorgan maintained an overweight stance with a ₹1,080 target price, highlighting a strong start to FY27 with robust loan disbursements and stable asset quality trends. However, Macquarie remained cautious, maintaining an underperform rating with a ₹860 target price, citing concerns over elevated valuations and the sustainability of high return ratios.

Among domestic brokerages, HDFC Securities maintained a buy rating with a ₹1,100 target price, calling it a steady quarter driven by stable growth and improving credit performance, while Motilal Oswal retained a neutral stance with a ₹1,000 target price, flagging limited near-term upside despite strong long-term fundamentals and profitability outlook.

Published on April 30, 2026