CLSA maintained its “outperform” rating on Bajaj Finance with a price target of ₹1,150 per share. The stock ended the previous session at ₹889.35 apiece.
The brokerage said Bajaj Finance has acknowledged the slowdown in banking credit. It continues to guide for loan growth to be in the mid-20s for financial year 2026 and over the medium-term.
The impact of Trump tariffs on export-oriented sectors is a concern. This is not because of direct exposure but because of second-order impact on consumers, according to CLSA.
AI-led initiatives remain a key focus, with 100 use cases to be deployed in financial year 2026, CLSA said. Such initiatives will help enhance operational efficiency and improve cross-selling revenue, it added. These initiatives are also expected to lower the cost-to-income ratio, CLSA said.
The impact of the RBI MPC’s most recent repo rate cuts has started to flow through, the brokerage said.
Bajaj Finance’s management expects 10 basis points net interest margin (NIM) expansion over the year from its current levels. In SME financing, the company has started trimming growth to curtail any asset quality issues, CLSA said.
Bajaj Finance is being tracked by 39 analysts, of which 21 of them have a “buy” rating, 13 say “hold”, while five have a “sell” recommendation on the stock.
Bajaj Finance shares gained 1.1% on Tuesday to hit an intraday high of ₹899.55 apiece on Tuesday. The stock has gained 29.05% this year, so far.
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