From mint · Asit Manohar · · 1m 20s
Jefferies picks Bajaj Finance for 35% upside
Jefferies India targets 35% share price rise for Bajaj Finance despite negative YTD return.
In brief
Jefferies India targets 35% share price rise for Bajaj Finance despite negative YTD return. Jefferies India forecasts Bajaj Finance shares to rise 35% from current price after ₹17,500 crore fund raise. Originally reported by mint.
Jefferies India's top stock pick
Jefferies India has named Bajaj Finance shares as its top stock recommendation for 2026.
“Bajaj Finance share: Jefferies India report says the fundraising involves ₹11,700 crore through a QIP and ₹5,800 crore in warrants being assigned to Bajaj Finserv”
Fund raise details
Bajaj Finance approved a ₹17,500 crore fund raise including ₹11,700 crore QIP and ₹5,800 crore warrants to Bajaj Finserv.
“The raising involves ₹ 117bn ( ₹ 11,700 crore) in QIP and ₹ 58bn ( ₹ 5,800 crore) of warrants being assigned to Bajaj Finserv”
Current share price
Bajaj Finance shares trade at ₹947.50 on NSE with a target price of ₹1,280 for 35% upside.
“Bajaj Finance share price today is ₹ 947.50 apiece on the NSE, and Jefferies India report has predicted Bajaj Finance share price target of ₹ 1,280”
Why bullish
Jefferies cites strong loan growth, staggered monetisation of BHFL stake, and management succession as key drivers.
“strong loan growth (23%), staggered monetisation of the 87% stake in BHFL, & mgt succession in Mar-28 may have led to the raise”
Target rationale
Jefferies uses SoTP valuation to set target at 5x Sep-28E P/BV with key risks including growth slowdown.
“Our PT (Price Target) of ₹ 1,280 is based on SoTP valuation. Standalone entity is valued at 5x Sep-28E P/BV”
Shareholder approval
Bajaj Finance seeks shareholder approval for QIP and warrants through Extra Ordinary General Meeting.
“Bajaj Finance said it would seek shareholder approval for both the QIP and preferential issue through an Extra Ordinary General Meeting”
Market reaction
Bajaj Finance shares have fallen 10% in one month with negative YTD return of 2.50%.
“Bajaj Finance share price has fallen around 10% in one month. In YTD, Bajaj Finance shares have delivered a negative return, correcting around 2.50%”
Risks and opportunities
Key risks include growth slowdown and NIM compression; opportunities include stronger rural financing and cost efficiencies.
“Key risks to our valuation include a slowdown in growth, higher-than-expected NIM compression, and deterioration in asset quality. Upside risks include stronger-than-expected growth in consumer durable and rural financing business”
What next
Bajaj Finance aims to strengthen capital base with fund raise approved by board for shareholder approval.
“The move comes as the NBFC looks to strengthen its capital base, with the proposed transactions together amounting to as much as ₹ 17,500 crore”
The bottom line
Jefferies India forecasts Bajaj Finance shares to rise 35% from current price after ₹17,500 crore fund raise.
