Why Are Global Brokerages Bullish on Bajaj Finance After Its Q1 Update?
About Bajaj Finance
Bajaj Finance Limited is one of India's largest non-banking financial companies (NBFCs), offering consumer finance, personal loans, SME finance, commercial lending, rural lending, deposits and wealth management services. Its diversified lending franchise, strong digital ecosystem and consistent execution have made it one of the country's most closely tracked financial institutions.
Leading global brokerage houses Jefferies and Morgan Stanley have reiterated their positive stance on Bajaj Finance following its Q1 FY27 business update. Both brokerages highlighted the company's strong assets under management (AUM) growth, healthy lending momentum and resilient business fundamentals despite an evolving macroeconomic environment.
Brokerage Highlights
🔹 Jefferies maintains an Accumulate rating with a target price of ₹1,210.
🔹 Jefferies noted that Q1 AUM growth accelerated to 24% YoY, the strongest performance in the past four quarters.
🔹 Strong consumer durable loan demand is expected to support business growth and improve Net Interest Margins (NIMs).
🔹 The brokerage believes Bajaj Finance could benefit from stronger FCNR(B) deposit mobilisation.
🔹 Bajaj Finance continues to remain one of Jefferies' preferred financial sector picks.
🔹 Morgan Stanley reiterated its Overweight rating with a target price of ₹1,120.
🔹 The brokerage highlighted 7.2% quarter-on-quarter AUM growth, the highest since Q2.
🔹 Investors are expected to closely monitor Q1 Net Interest Margins, credit costs and management commentary on FY27.
The positive brokerage commentary reflects confidence in Bajaj Finance's ability to sustain growth despite geopolitical uncertainties and evolving interest rate dynamics.
For traders looking to identify quality opportunities, explore our latest Nifty Tip and BankNifty Tip.
Brokerage Comparison
| Brokerage | Rating | Target Price | Key View |
|---|---|---|---|
| Jefferies | Accumulate | ₹1,210 | Strong AUM growth, better NIM outlook and healthy demand. |
| Morgan Stanley | Overweight | ₹1,120 | Highest quarterly AUM growth since Q2; focus on margins and credit costs. |
Both brokerages agree that Bajaj Finance continues to demonstrate healthy operational momentum. However, investors will closely watch margin performance, provisioning trends and management guidance when the company announces its detailed quarterly results.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes Bajaj Finance remains one of the strongest franchises in India's NBFC space, supported by diversified lending, disciplined risk management and consistent execution. Investors should monitor NIMs, credit quality and management commentary to assess whether the current growth momentum can be sustained through FY27.
Read more market insights and research on Indian-Share-Tips.com, a SEBI Registered Advisory Services.
Related Queries on Bajaj Finance and NBFC Sector
🔹 Why are Jefferies and Morgan Stanley positive on Bajaj Finance?
🔹 What is Bajaj Finance's latest AUM growth?
🔹 How could consumer durable loans improve margins?
🔹 What should investors monitor in Bajaj Finance's Q1 results?
🔹 Is Bajaj Finance among the preferred NBFC stocks?
SEBI Disclaimer: This article is for educational and informational purposes only and should not be construed as investment advice. Brokerage views are opinions and not guarantees of future performance. Investors should consult a SEBI-registered investment adviser before making investment decisions.
