Shares of Bajaj Finance, a leading non-banking financial company, slipped nearly 7% in early trade on Tuesday, November 11, despite posting strong double-digit profit growth for the July–September quarter. Investor sentiment weakened as the company trimmed its growth outlook and highlighted stress in the MSME portfolio, raising near-term concerns.
For Q2 FY25, Bajaj Finance reported a 23% rise in consolidated net profit to ₹4,948 crore, while net interest income grew 22% year-on-year to ₹10,785 crore from ₹8,838 crore. However, the firm reduced its full-year credit growth guidance to 22–23% from 24–25%, citing emerging pressure in the MSME segment.
Following the update, JM Financial cut its FY26–27 earnings per share estimates by 2–3%, rolled forward its projections to FY28, and assigned a new target price of ₹1,140 (up from ₹1,060 earlier). The brokerage downgraded the stock to “ADD” from “BUY,” noting limited upside given expensive valuations and lack of short-term catalysts. It expects healthy profitability with a projected 25% PAT CAGR and RoA/RoE of 4.2%/22% by FY28 but maintained a neutral stance with a ₹1,160 price target.
