Bajaj Finance Among Jefferies’ Top NBFC Stock Pick, 23% Upside Potential Eyed—Here's Why
Bajaj Finance is confident about maintaining 23-24% year-on-year loan growth, supported by diversified products and expansion into new segments such as gold loan and new consumer durable categories.

Bajaj Finance has emerged as one of Jefferies's top picks in the consumer finance space, with brokerage assigning a 'Buy' rating and a target price of Rs 1,100 implying a 23% upside from the current level. Jefferies said, “BAF is among a handful of lending platforms that are large by market cap ($64bn), that are able to grow over 20% and deliver near 20% ROE.”
On the SME segment, which accounts for 12% of Bajaj Finance’s loan book, Jefferies reported, “Management clarified that while the SME segment has seen some pressure on asset quality, the extent of pressure isn't as high as feared by investors.” The company expects credit costs to remain within the guided range of 185–195 basis points of average loans for FY26.
The brokerage also noted that Bajaj Finance is confident about maintaining 23-24% year-on-year loan growth, supported by diversified products and expansion into new segments such as gold loan and new consumer durable categories. Jefferies quoted the management as saying, “Sales of consumer durables have witnessed decent growth,” and emphasized that the upcoming festive season will be key to sustaining momentum.
The brokerage however noted for Bajaj Finance that, "Management feels that broader economy is relatively slower and government actions on cut in tax rates (income and GST) should spur consumption"
On the operational front, Jefferies noted, “Margins for the year should be down YoY and will start to expand YoY from 4Q,” while the cost-to-income ratio is expected to improve by 30–50 basis points annually due to the operational efficiencies.