Bajaj Finance share price: Shares of blue-chip non-banking finance company (NBFC) Bajaj Finance tumbled nearly 7% in early trade on Tuesday, November 11, even as the firm posted a double-digit growth in the consolidated profit for the July-September quarter.
However, a cut in guidance and signs of stress in the MSME segment sparked near-term growth concerns, weighing on the blue-chip stock.
Bajaj Finance Q2 results
Bajaj Finance reported a 23% increase in consolidated net profit to ₹4,948 crore for the second quarter ended September 30, post-market hours on Monday. The net interest income rose 22% to ₹10,785 crore compared to ₹8,838 crore in the second quarter of FY25.
The company’s asset quality worsened, with gross non-performing assets rising to 1.24% of the gross loans by the end of September 2025, from 1.06% a year ago. Similarly, net NPAs, or bad loans, also increased to 0.6% from 0.46% at the end of the second quarter of the previous fiscal year.
Bajaj Finance, meanwhile, lowered its credit growth guidance for the current financial year to 22-23% from its earlier expectation of 24-25% as the NBFC grapples with emerging stress in its MSME portfolio.
The slowdown in MSME and two-wheeler lending has led the company to adopt a more ‘balanced and prudent stance’ on asset growth this year, as per a Mint report.
Further, management guided for flat NIMs from here on as cost benefits will be passed on to customers. Fee income growth guidance of ~13%-15% and credit cost of ~1.85%-1.95 in FY26E was maintained.
Should you buy or sell Bajaj Finance shares?
Considering the revision in management’s growth guidance, JM Financial revised its earnings per share (EPS) estimates down by ~2%-3% for FY26/27E. It rolled forward estimates to FY28E and values Bajaj Finance stock at ~4.7x/24x Sep-27E BVPS/EPS to entail a revised target price of ₹1,140 ( ₹1060 earlier). Additionally, it downgraded the stock to ‘ADD’ from BUY earlier.
Meanwhile, brokerage Motilal Oswal Financial Services (MOSL) said that Bajaj Finance reported a mixed quarter in Q2 FY26.
It said that Bajaj Finance stock trades at 5x FY27E P/BV and ~26x FY27E P/E. Despite a healthy PAT CAGR of ~25% over FY25-FY28E and RoA/RoE of 4.2%/22% in FY28E. “We see limited upside catalysts given the rich valuations and lack of near-term valuation re-rating triggers. Consequently, we reiterate our Neutral rating on the stock with a target price of ₹1,160 (premised on 4.8x Sep’27E BVPS),” it said.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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