Bajaj Finance rallies 11% in 2 weeks; JM Financial sees more upside

JM Financial maintains 'Buy' rating on Bajaj Finance with revised target price of ₹1,060, as it expect pressure on yields due to movement in secured segments to be offset by decline in cost of funds

Bajaj Finance share price today: Shares of Bajaj Finance continued their upward momentum, rising 1 per cent to ₹973.85 on the BSE in Thursday’s intra-day trade. Over the past two weeks, the stock of the non-banking finance company (NBFC) has rallied 11 per cent and is now quoting higher for the 12th straight session. The counter is trading close to its record level of ₹978.59, hit on June 9, 2025.

What’s driving Bajaj Finance stock price?

The rally in Bajaj Finance stock price is on the back of higher credit growth expectation after the Goods and Services Tax (GST) Council on September 3, 2025, approved a two-slab structure, removing the 12 per cent and 28 per cent slabs and slashing rates on a wide range of essential items.

 

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The rate rationalisation marks a structural positive for the consumption sector. Among the key drivers on the demand side, household consumption is expected to remain robust, aided by the tax relief in the Union Budget 2025-26. 

 

Bajaj Finance is one of India’s largest and well-diversified non-banking finance companies (NBFC). The company provides loans for two wheelers, consumer durables, housing, SME & MSME businesses etc. Bajaj Finance has an asset under management (AUM) of ~₹4.41 trillion as of June 2025, and continues to be the largest consumer durables lender in India.

 

Meanwhile, the rating agency ICRA expects the NBFC credit (excluding the infrastructure-focused entities) is projected to expand at 15-17 per cent in FY2026, compared to 17 per cent in FY2025 and 24 per cent in FY2024. While the pace of incremental bank credit growth in the current year lags at ₹3.9 trillion for 5MFY2026 compared to ₹5.1 trillion for the previous year, the recent GST rate cuts aimed at spurring domestic demand and partly offsetting the tariff impact on the exports would support credit expansion for banks and NBFCs in the near term. 

 

With the upcoming CRR cut and GST rationalisation, ICRA foresees credit growth at the higher end of its estimated range of 10.4-11.3 per cent for banks and 15-17 per cent for NBFCs. 

JM Financial sees more upside in Bajaj Finance stock price

Analysts at JM Financial Institutional Securities expect pressure on yields due to movement in secured segments to be offset by a decline in the cost of funds. Further, pressure on fee income should be largely offset by operating leverage. Credit cost in FY26/27 should moderate from FY25 levels but still remain higher than long-term trends. The brokerage firm expect 23 per cent/27 per cent AUM/EPS CAGR during FY25-27E and maintain ‘Buy’ rating with revised target price of ₹1,060 driven by rollover, valuing Bajaj Finance at 4.4x/22x Sep’27 BVPS/EPS.