Bajaj Finance shares to cross ₹10,000? Large-cap stock hits new high on leadership ability; brokerages lift targets

Shares of Bajaj Finance Ltd surged over 4 per cent in intra-day trading on Friday, March 21, hitting a new all-time high of ₹9,070. The sharp rally came after the company announced Anup Kumar Saha as its new Managing Director (MD), replacing Rajeev Jain.

While Jain will transition to the role of Vice Chairman for a three-year term starting April 1, Saha will take over as MD until March 31, 2028. The leadership continuity and clear strategic direction lifted investor sentiment, prompting multiple brokerages to raise their price targets on the stock.

Leadership Transition: Anup Kumar Saha Takes Over as Bajaj Finance MD

Bajaj Finance announced that Anup Kumar Saha, who currently serves as the Deputy Managing Director, will assume the role of MD starting April 1, 2024. His term will run until March 31, 2028. Meanwhile, Rajeev Jain, who has led the company for several years, will be re-designated as Vice Chairman for a three-year period.

Saha, who joined Bajaj Finance in 2017, brings 25 years of experience in the financial services sector. His tenure includes 14 years at ICICI Bank and 11 years with non-bank financial entities, making him a seasoned industry professional.

Bajaj Finance Garners Multiple Price Target Upgrades

Leading global brokerages have raised their price targets on Bajaj Finance, citing leadership continuity, strategic clarity, and expectations of strong financial performance. The revisions come after Rajeev Jain, the long-standing Managing Director and CEO, confirmed his continued association with the company, alleviating market concerns over potential management transition risks.

BofA Securities: BofA Securities raised its price target on Bajaj Finance to ₹10,500 while maintaining its "buy" recommendation. The brokerage highlighted that recent developments addressed a key overhang, calling the leadership transition a "well-executed plan." It expects Bajaj Finance’s earnings to benefit from a recovery in Net Interest Margins (NIMs) and peaking credit costs, boosting overall profitability.

Citi: Citi also raised its price target on Bajaj Finance to ₹10,200, retaining its "buy" rating. The brokerage praised the company's leadership continuity and strategic clarity, noting that these factors strengthen execution capabilities and mitigate risks associated with management changes.

CLSA: CLSA, which has the highest price target among brokerages, reaffirmed Bajaj Finance as its 'top pick' and projected a net profit CAGR of 26 per cent over the next two years. The brokerage believes that credit costs are near their peak and should moderate in the financial year 2026, supporting earnings growth.

Morgan Stanley: Morgan Stanley also revised its price target on Bajaj Finance from ₹9,300 to ₹10,500, citing Jain’s continued leadership as a major confidence booster. The brokerage noted that Jain's presence reduces long-term uncertainty, which should improve investor sentiment. It added that Bajaj Finance now has one of the "strongest and clearest investment theses" among large-cap private financials.

Morgan Stanley anticipates that the recent re-rating of the stock will sustain, driving strong returns over the next 12 months.

Stock Performance and Outlook

Bajaj Finance's stock soared 4.4 per cent in intra-day deals on Friday, reaching an all-time high of ₹9,070. The stock has rallied over 42 per cent from its 52-week low of ₹6,376.55, recorded in June 2024.

The scrip has also gained 4.5 per cent in March so far, extending its winning streak for the fourth consecutive month. It rose 8 per cent in February, 15.5 per cent in January, and nearly 4 per cent in December.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.