- Strong Q1 FY27 financial performance, featuring 28% net profit growth and expanding assets under management, continues driving Bajaj Finance's underlying rally
- Leading brokerages maintain buy ratings with target prices reaching ₹1,300, viewing recent intraday pullbacks as temporary profit-taking rather than growth exhaustion
- While short-term traders can lock in profits near new peaks, long-term investors can utilize minor pullbacks to accumulate shares in this growing franchise
Bajaj Finance share price experienced a notable week, with its stock reaching a new 52-week high of ₹1,176.4 before settling around ₹1,143, showing a slight intraday decline. This follows a year of significant gains, with the stock going up by about 30%, outpacing the broader market. But does this mean it’s all clear for investors to go all in?
Robust Q1 Earnings Fuel Gains
The company’s strong performance is underpinned by healthy financial fundamentals. Bajaj Finance (NSE: BAJFINANCE), a non-banking financial company, reported a consolidated net profit of ₹6,081 crore for the first quarter of FY27, marking a 28% increase compared to the previous year.
This growth was consistent across its lending segments, leading to a 24% rise in Assets Under Management (AUM) to ₹5.46 lakh crore. Asset quality also showed improvement, with gross non-performing assets (GNPA) decreasing to 0.96% and net NPA to 0.39%.
Where the Analysts Actually Disagree
Here’s where things get interesting. Brokerages aren’t all on the same page about how much further this can run. On the bullish side, JPMorgan targets ₹1,295, BNP Paribas ₹1,290, Jefferies ₹1,280, and HDFC Securities ₹1,300. These analysts believe the credit cycle has turned favorably, with multiple growth engines firing together.
But a few others are notably more cautious. Macquarie’s target is just ₹850, and UBS’s is ₹910, both well below the current price. Even HDFC Securities, despite its optimistic target, noted that the current valuation at over four times projected March 2028 book value, limits near-term upside. At nearly 6.3 times current book value, the stock isn’t cheap by any measure.
Buy, Hold, or Take Profit?
For investors, the decision to buy, hold, or sell depends on individual investment strategies. Short-term traders who have seen substantial gains from the 52-week low of ₹787.90 might consider taking partial profits near the ₹1,176 level as a risk management measure against market fluctuations.
Long-term investors may find opportunities to add to their holdings during minor price corrections, viewing these as chances to invest in a leading company. Those considering new investments might benefit from waiting for a more significant pullback towards support levels, rather than entering after a recent high, to achieve a potentially better risk-reward balance.
For those with a multi-year horizon, minor intraday dips offer attractive opportunities to accumulate shares in a market-leading franchise. If you’re looking to enter fresh, waiting for a deeper pullback toward support, rather than chasing the stock right after a 52-week high, usually offers a better risk-reward setup.
With solid AUM expansion and controlled credit costs, Bajaj Finance still has the underlying strengths to sustain its long-term rally.
Strong Q1 FY27 results with 29% profit growth, 24% NII growth, and improved asset quality fuelled the rally.
Yes, somewhat. Trading near 6.3 times book value, some brokerages say valuation is capping near-term upside.
Long-term investors may accumulate on dips toward support levels, while short-term buyers might wait for clearer consolidation before entering.