Shares of Baaj Fiannce Ltd tarded higher on Friday, after its better-than-expected June quarter earnings prompted a wave of optimism from brokerages, with Citi, Jefferies and Morgan Stanley raising their target prices. This is after the lender delivered strong loan growth, resilient margins and improving asset quality.
Bajaj Finance shares rose as mucha s 5.17% to Rs apiece intraday.
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The non-bank lender reported a 27.4% year-on-year rise in consolidated Q1 net profit to Rs 5,986 crore, ahead of analysts' expectations of Rs 5,846 crore. Net interest income (NII) increased 23% to Rs 12,571 crore, also surpassing estimates, while operating profit came in at Rs 10,137 crore, marginally above Street forecasts.
Morgan Stanley retained its 'Overweight' rating and raised its target price to Rs 1,225 from Rs 1,175, calling the company to be in a "strong phase." Jefferies maintained its 'Buy' rating while increasing its target price to Rs 1,280. It continues to rank the lender among its top picks in the large-cap financial space.
Citi was even more optimistic, raising its target price to Rs 1,300 while retaining a 'Buy' rating. The brokerage described the performance as "stronger, cleaner, faster," saying management's commentary pointed to improving business trends and that FY27 guidance could be revised higher after the second quarter.
Macquarie remained the lone bear, reiterating its 'Underperform' rating with a target price of Rs 850.
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