Brokerage firms remain optimistic about Bajaj Finance Ltd shares, citing both technical and fundamental strengths. Analysts, both domestic and global, anticipate a potential double-digit upside for the blue-chip financial services company in the near future.
Bajaj Finance shares rose over 2.25% to reach Rs 8,878 on Wednesday, setting a new 52-week high, while its market capitalization surged past Rs 5.4 lakh crore. The stock had closed at Rs 8,679.75 on Tuesday and has gained more than 26% in 2025 so far.
According to Axis Securities in a recent report, Bajaj Finance has decisively broken above the ascending triangle pattern at Rs 8,680 after a five-week consolidation on the daily charts, indicating a continuation of its medium-term uptrend. The brokerage sees an upside potential of 9-11% for the stock.
"The stock is holding firm above the 23 per cent Fibonacci retracement level of the Rs 6,451–8,739 rally, positioned at Rs 8,214, which reinforces a strong support base and demonstrates a sharp rebound. Trading above key short- and medium-term moving averages (20, 50, 100, and 200 days), the stock maintains a strong bullish bias," it said.
A breakout above the upper Bollinger Band on the daily chart signals the start of a new uptrend following the consolidation phase. The daily RSI has moved above its reference line, triggering a 'buy' signal. Following the breakout, the stock is expected to begin an upward trend, with target levels set at Rs 9,520 and Rs 9,685, while the trend reversal level stands at Rs 8,385, according to Axis Securities.
In a report dated 17 March 2025, S&P Global Ratings revised its long-term outlook for the company from ‘Stable’ to ‘Positive.’ The agency also upgraded the company’s standalone credit profile (SACP) from BBB- to BBB. Bajaj Finance announced this update on Tuesday, with S&P Global noting that the positive outlook is tied to India's sovereign credit rating.
Bajaj Finance Managing Director Rajeev Jain, whose term concludes on March 31, 2025, remains fully dedicated to the business. The board will decide on his continuation, as stated by Bajaj Finserv Chairman and Managing Director Sanjiv Bajaj in a TV interview. Jain has expressed his desire to stay with the company and play an active role in shaping its strategies and those of its subsidiaries.
Rajeev Jain's new role is expected to be announced before his term ends on March 31, 2025. Morgan Stanley suggests a higher likelihood of him continuing with Bajaj Finance, which would likely be viewed positively by investors and could fuel further growth in the stock.
"This could drive the stock closer to our March-26 target price of Rs 9,300 (implying 21.5 times F27e P/E). We think the stock could thereafter re-rate higher in the next 12 months, as many long-only investors may be more inclined to take a 24-36 month view as management transition concerns are resolved, credit costs poised to decline, a favourable interest rate cycle and receding regulatory risks," it said, with a bull case target price of Rs 11,360.
