Shares of Bajaj Finance, India's largest non-banking financial company (NBFC), rallied up to 6% after the company reported a strong set of Q1 FY27 results. The stock crossed the ₹1,120 mark, while Bajaj Finserv also gained nearly 4%, reflecting strong investor confidence following better-than-expected quarterly earnings and upbeat management commentary.
The rally comes after leading brokerage firms turned increasingly bullish on the stock, citing robust loan growth, stable asset quality, and healthy operational performance.
Bajaj Finance Shares Rally After Strong Q1 Results
Bajaj Finance shares opened around ₹1,095 and climbed to an intraday high of ₹1,122. Meanwhile, Bajaj Finserv shares also witnessed strong buying interest, rising from ₹1,932 to ₹1,992 during early trade.
Market experts believe the impressive Q1 performance has reinforced confidence in Bajaj Finance's long-term growth story despite broader market volatility.
Brokerages Raise Target Prices on Bajaj Finance
Several global brokerage houses reaffirmed their positive outlook on Bajaj Finance after the quarterly earnings announcement.
CLSA maintained its 'Outperform' rating and increased the target price to ₹1,300, stating that Bajaj Finance once again showcased its "Iron Man-like" consistency.
HSBC reiterated its 'Buy' recommendation and raised the target price to ₹1,270, highlighting strong performance across all key operating metrics.
Nomura retained its 'Buy' rating with a target price of ₹1,140, noting that earnings exceeded expectations due to strong operational execution and healthy asset quality.
Bernstein Remains Cautious
Not all brokerages turned bullish. Bernstein maintained its 'Underperform' rating and kept a target price of ₹840.
While the brokerage acknowledged:
24% growth in Assets Under Management (AUM),
Stable Net Interest Margins (NIMs),
Improving asset quality,
it believes the stock's current valuation already reflects much of the near-term optimism, limiting further upside.
Why Investors Are Bullish on Bajaj Finance
Analysts remain optimistic due to several factors:
Strong loan book and AUM growth
Healthy asset quality with controlled credit costs
Stable profitability and margins
Positive management guidance for future growth
Continued leadership in India's NBFC sector
These factors have strengthened investor confidence, leading to fresh buying in both Bajaj Finance and Bajaj Finserv shares.
Should Investors Watch Bajaj Finance?
Following the strong Q1 results, Bajaj Finance continues to remain one of the most closely tracked financial stocks in the market. While most brokerages see further upside with target prices ranging between ₹1,140 and ₹1,300, investors should also consider valuation risks highlighted by Bernstein before making fresh investment decisions.
With robust fundamentals, consistent earnings growth, and improving business momentum, Bajaj Finance is expected to remain in focus in the coming sessions.
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