Bajaj Finance Shares Fall After Q1 Results – What Top Brokerages Recommend
Bajaj Finance Share Price Falls After Q1 Results – What 6 Top Brokerages Suggest Now
Bajaj Finance stocks suffered a significant setback as the company reported Q1 (June quarter) results that were below the expectations. The stock dropped more than 6 percent following the downgrading of its rating by global financial company J.P. Morgan to Neutral, downgrading earlier to Overweight. This downgrade set panic among stockholders leading to sell-off.
At the close of the trading session, Bajaj Finance shares ended down 5.66% at 904.75 at the BSE. The stock traded 6.40% to a low of 897.65 during the intraday trade..
What Did Bajaj Finance Say?
During its earnings call on Thursday, the management team of Bajaj Finance expressed its fears regarding the pressure in such segments as two-wheeler, three-wheeler, and MSME lending. They further reported that increase in Asset under Management (AUM) in FY2026 will be slow. This year the company forecasts the expansion of the overall AUM by 23-25 percent.
Now on the basis of the 39 analysts who follow the stock, 20 have advised to buy, 14 to hold and 5 to sell.
What Brokerages Say about Bajaj Finance?
1. J.P. Morgan – Neutral Rating
Following its Q1 results, J.P. Morgan recently changed its recommendation on Bajaj Finance to below, which was initially set to overweight. The quality-high growth combination is unusual and the firm continues to rate Bajaj Finance as one of the best quality NBFCs (non-banking financial companies). But concerns such as an increase in mortgage attrition, feeble asset quality of MSME, and a strain in vehicle loans may be detrimental to performance in the future. J.P. Morgan recommends that one has to wait up to 1-2 quarters before re-evaluating.
2. UBS – Sell Rating | Target Price: ₹750
UBS has also assigned it a sell rating of 750 target. As the company informs, despite the fact that the ambiguity of leadership transfer has been partially eliminated (the term of tenure of the current MD Rajeev Jain expires in 2028), the pressure in the MSME sector is likely to persist in the short term.
3. Macquarie – Underperform Rating | Target Price: ₹800
Macquarie too lowered its rate on Bajaj Finance to Underperform and gave a target of 800. It thinks that the stock is yet to price in the slower pace of growth outlook and the increase in credit expenses. According to FY2027 estimates stock has a trading price of 4.4x price to book value. In case of increasing stress on underlying assets, the cost of credit can go up even more.
4. Goldman Sachs – Neutral Rating | Target Price: ₹969
The target of goldman Sachs was kept at 969 with a rating of Neutral. The brokerage also noted that the ratio of provisions coverage decreased by 160 basis points in the June 2025 quarter and that should be a cause of concern. Over-leveraging is another problem the company has to live with according to the management.
5. Bernstein – Underperform Rating | Target Price: ₹640
Bernstein is the most negative with the target of 640 rupees and an Underperform rating. According to the firm, the Q1 results were outspoken about the fact that Bajaj Finance is on the backfoot. The fact that loan spread continues to decline is a major concern and the company has very little as far as fixing this predicament is concerned in the short term.
6. CLSA – Outperform Rating | Target Price: ₹1,150
Unlike majority of people, CLSA is optimistic with the rating of Outperform and the target of 1150 Indian rupees. They do accept that the June quarter was not that much good but they do feel it was alright given the conditions in the market. CLSA anticipates that the net profit of Bajaj Finance would increase at the annual rate of 25% (compound annual growth rate or CAGR) in the next two years.
Also Read : Why Reliance Share Is Falling? Shocking Reasons Every Investor Must Know!
Final Thoughts
The shares of Bajaj Finance have come under pressure after a poor quarter-fourth result and guarded projections by a number of brokerages. Whereas some companies are optimistic in regards to the company future, others have raised their voices about the slow assets under management growth, increase in credit risk and asset quality.
Before undertaking any major decision to invest in Bajaj Finance, investors need to remain careful and monitor the future quarterly results closely.
