Bajaj Finance trades on a muted note ahead of Q1; Morgan Stanley sees 31% potential upside after subsidiary’s June qtr show

Ahead of its results later today, NBFC major Bajaj Finance traded on a subdued note in Tuesday’s trade. At the last count, Bajaj Finance was down 0.5 per cent or Rs 36.2 at Rs 6,846, while the Nifty index traded with a cut of 0.2 per cent.

Zee Business research desk expects the company to post 16.4 per cent jump in profit year-on-year to Rs 4,000 crore. The net interest income (NII) during the previous quarter is expected to surge 26.5 per cent to Rs 8,500 crore. The company logged an NII of Rs 6,718.6 crore in the same quarter last year.

The asset quality at the NBFC company is estimated to remain steady QoQ with net non-performing assets seen at 0.375 per cent. 

What brokerages advice for Bajaj Finance?

Morgan Stanley has continued with its overweight rating on the stock for a target of Rs 9,000, suggesting a potential upside of 31 per cent over the previous close. The brokerage has retained its rating after the company’s housing finance subsidiary posted a 27 per cent sequential growth in PAT due to higher tax rate. The AUM at the company rose 6 per cent sequentially,  lower than the parent company’s  consolidated AUM growth of 7 per cent QoQ.

Bajaj Finance share price performance

Bajaj Finance share is an underperformer and in the last one year has gone down by 10 per cent nearly.