Bajaj Finance hits record high as strong Q3 earnings fuel optimism

Bajaj Finance shares surged 6 per cent to an all-time high of Rs 8,250.65 on January 30, buoyed by robust quarterly results and bullish brokerage views. The non-bank financial giant posted an 18 per cent year-on-year jump in consolidated net profit to Rs 4,308 crore for Q3FY25, surpassing analysts’ projections. 

Strong earnings drive stock rally

The company’s net interest income (NII) rose 23 per cent to Rs 9,382 crore, supported by a 28 per cent growth in assets under management (AUM), which reached Rs 3.98 lakh crore as of December 31, 2024. This consistent expansion reaffirmed investor confidence, leading to a surge in stock prices.

Brokerages remain bullish

Leading brokerages raised their target prices, citing strong fundamentals and growth prospects. Morgan Stanley maintained an ‘Overweight’ stance, increasing its target to Rs 9,300, noting sustained lower credit costs and a projected 25 per cent earnings per share (EPS) growth in FY26. Jefferies assigned a ‘Buy’ call with a Rs 9,270 target, highlighting stable asset quality and an anticipated smooth CEO succession.

Nomura also issued a ‘Buy’ call, raising its target to Rs 9,000, attributing its positive outlook to Bajaj Finance’s steady performance and robust loan growth. HSBC upgraded its target price to Rs 8,900, emphasizing the company’s premium valuation over peers and broad-based AUM expansion.

Investor sentiment remains upbeat

The market’s reaction underscores growing confidence in Bajaj Finance’s ability to sustain profitability amid a favourable lending environment. With a strong balance sheet, improving asset quality, and consistent growth in key metrics, the stock remains a preferred pick among institutional investors.

As the company moves ahead with expansion plans, market watchers expect continued momentum, contingent on macroeconomic stability and credit cost management.