Insights on Bajaj Finance Market Response & Growth

Analysts Unimpressed with Bajaj Finance 's June Quarter Results

Shares of Bajaj Finance are under scrutiny as several brokerage firms express disappointment with the company 's performance in the June quarter . Despite the concerns raised by analysts , a majority of them still maintain a ' Buy ' recommendation on the stock . However , there are also some who have a ' Hold ' or ' Sell ' rating on Bajaj Finance.

Jefferies , a global brokerage firm , has reduced its price target for Bajaj Finance due to the company 's lower - than - expected Q1 profit . The firm highlighted a significant increase in credit costs , which could impact the stock 's future growth prospects . Similarly , Citi also lowered its price target on Bajaj Finance , citing core earnings that failed to meet expectations and elevated credit costs.

Expectations for Future Performance

Despite the current challenges , some brokerages like Morgan Stanley are optimistic about Bajaj Finance 's outlook . They believe that the company 's performance will improve in the second half of FY25 as earnings grow and asset quality strengthens . However , they caution that the stock 's near - term performance may remain subdued before witnessing a turnaround in the future.

Bajaj Finance reported a 14 % year - on - year increase in net profit and a 24.5 % growth in Net Interest Income ( NII ) . The company 's asset quality also remained stable , with Gross NPA at 0.86 % and Net NPA at 0.38 % . Additionally , the Provision Coverage Ratio for the quarter stood at 56%.

Market Response

Following the news , shares of Bajaj Finance saw a decline of 2.27 % on Tuesday , closing at ₹ 6,728 . Year - to - date , the stock has dropped by 8 % , reflecting investor concerns about the company 's performance . Analysts believe that Bajaj Finance needs to focus on improving its core earnings to sustain its premium valuation in the market.

In conclusion , while Bajaj Finance faces challenges in the short term , there is optimism about its future performance . The company 's ability to address the issues raised by analysts and deliver strong financial results will be crucial in determining its long - term success in the non - bank financial institution sector.