The Bajaj Finance share price is in focus after the surprise leadership change. The company’s recently appointed MD, Anup Saha, who was appointed in April 2025, has resigned. Its long-standing former MD, Rajeev Jain, is there as Executive VC & will now be VC & MD till March, 2028. While Sinha’s name has emerged as a candidate for IndusInd Bank CEO, the international brokerage house, Jefferies believes, “Jain and the seasoned top management team at Bajaj Finance can make the transition smooth, but succession will be a medium-term deliverable.”
While they anticipate that Jain “may pull back on an advisory role for Bajaj Finserv,” Bajaj Finance remains the top NBFC pick.They have a Buy rating with a target price of Rs 1,044 per share. This implies 10% upside from current levels.
Jefferies on Bajaj Finance: To benefit from uptick in credit demand
Even as the current developments count as slightly negative, Jefferies believes that the “franchise is on a good footing that can benefit from lower rates, improving asset quality, and an uptick in credit demand.” They expect the NBFC to deliver 20% profit growth annually between FY25-FY28 on a compounded basis, and the “FY26 return on equity” is pegged at 19%. The target price is based on 4.9 times the estimated price-to-book ratio for June 2027.
Jefferies on Bajaj Finance: Rajeev Jain’s presence will make transition smoother
Rajeev Jain has been the architect of success at Bajaj Finance and was CEO for over 15 years. He was recently elevated to the role of Executive Vice Chairman, but will now take back the role as MD. Though Jefferies believes that his presence will smoothen out the succession process, it is a key monitorable, as “in case of NBFCs, the appointment of CEO/ MD is decided by board/ NRC and unlike banks they don’t need to take specific approvals from RBI.”
Given Jain’s stature and relationship with stakeholders, Jefferies “expects this transition to be smooth in the near term, and focus will continue to stay on growth, asset quality, and profitability. Rajeev may need to pull back from any advisory contribution to Bajaj Finserv.”
Jefferies on Bajaj Finance: New MD a medium-term deliverable
While Jain’s availability as well as the depth of the management team will allow a smooth transition in the near term, Jefferies pointed out that, “for the medium term Bajaj Finance may need to find/ groom talent to take up the role as CEO/ MD.” This will be Rajeev’s fouth term (16yrs) and “while the norms around banks (limiting the term to 15 years for non-promoter CEOs) don’t apply to NBFCs, the group may look at finding suitable succession options,” they added.
