Bajaj Finance shares defy Sensex, Nifty crash but brokerages see more upside; here's why  

Shares of Bajaj Finance Ltd have defied the ongoing market correction. The NBFC stock has risen 23.29% in 2025, 19.64% in three months and 16.14% in six months. On the other hand, Sensex slipped 5.19% this year and 11% in six months. Similarly, Nifty declined 5% in 2025 and lost 11.55% in six months.

The component of both Sensex and Nifty is on the buying list of foreign brokerages.

Morgan Stanley has an overweight call on the stock with a target of Rs 9,300 per share. The brokerage said that lower stressed asset formation of Q2 was sustained in Q3. The management guided for lower credit cost in Q4. According to the global brokerage, visibility Of 25% plus EPS growth in F26 has improved, subject to macroclimate.

Jefferies has assigned a buy call with a target of Rs 9,270/share. It said Q3 profit came 5% ahead of estimates led by a better topline. The NBFC clocked strong loan growth of 28% led by growth in NII & Fees.

The brokerage believes that asset quality trends are stabilising and management expects credit costs to start tapering-off from Q4.

Nomura has raised its price target to Rs 9,000 per share and assigned a buy call to the NBFC. Profit came above estimate due to lower credit cost at 2.1%.

Another global brokerage HSBC On Bajaj Finance has a buy call on the NBFC stock with a target of Rs 8,900 per share.

In Q3, broad-based AUM growth and stronger-than-expected asset quality were key to the company's performance. The brokerage believes shares deserve a premium to peers and raised its price to book value multiple to 5 times for FY26.

BofA has assigned a price target of Rs 9,350 to the stock. The global brokerage listed out key triggers for its bullish stance.

Strong track record of managing asset quality stress, re-acceleration in earnings growth, stable funding costs and credit costs peaking are some key triggers for Bajaj Finance Ltd. Other two triggers are industry leading growth with proactive pruning in high-risk segments and managing director's intention to continue to contribute towards medium-term objections.

In the current session, Bajaj Finance stock climbed 2.44% to Rs 8625.25 on BSE. Market cap of Bajaj Finance climbed to Rs 5.32 lakh crore.

Total 0.21 lakh shares of the firm changed hands amounting to a turnover of Rs 17.63 crore on Monday.

Bajaj Finance's relative strength index (RSI) stands at 54.8, which signals the stock is neither oversold nor overbought. A level below 30 is defined as oversold while a value above 70 is considered overbought. Bajaj Finance stock has a one-year beta of 1.1, indicating average volatility during the period.

The stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

In Q3 of this fiscal, Bajaj Finance Ltd recorded an 18 per cent rise, year-on-year (YoY). Profit after tax (PAT) came at Rs 4,308 crore as against Rs 3,639 crore in the year-ago period. Net interest income increased by 23 per cent in Q3 FY25 to Rs 9,382 crore from Rs 7,655 crore in the corresponding period last year.