Bajaj Finance shares: Jefferies India's top stock pick — 35% upside seen despite negative YTD return | Target price
AI Summary
Bajaj Finance's recent capital raise, despite a challenging market environment, signals a strategic move to bolster its financial position and potentially unlock growth opportunities. Retail investors should consider that while the stock has faced short-term volatility, Jefferies' bullish price target suggests a significant upside, indicating confidence in the company's long-term fundamentals. This could be a pivotal moment for Bajaj Finance, especially if it successfully leverages the funds for expansion in consumer financing, which remains a key growth area in the Indian market.
Jefferies India's top stock recommendation: Bajaj Finance shares are one of the beaten-down stocks in the Indian stock market. Bajaj Finance share price has fallen around 10% in one month. In YTD, Bajaj Finance shares have delivered a negative return, correcting around 2.50%. However, it figures in Jefferies India's top stock pick. The Jefferies India report dated 2 October 2026 has predicted a trend reversal in the stock, setting a Bajaj Finance share price target 35% above the current market price.
Jefferies India report dated 2 October 2026 says the Bajaj Finance board has approved a ₹175bn ( ₹17,500 crore) capital raise ( ₹58bn ( ₹5,800 crore) preferential warrants to BFS & ₹117bn ( ₹11,700 crore) QIP). Tad above our expected level; 3% of mkt cap & 13% of FY27E net worth. While leverage is fair at 4.9x with a retained ROE of 17%, strong loan growth (23%), staggered monetisation of the 87% stake in BHFL, & mgt succession in Mar-28 may have led to the raise. This can lift FY28e BVPS by 8%, EPS is flat & ROE tapers marginally. BAF stays among our top picks.
Original Article
Published on Livemint
Frequently Asked Questions
What is this article about?
This is a market news update from Livemint, published on 03 October 2026.
Is this news positive or negative for markets?
TopFund's automated sentiment analysis reads this article as neutral in tone, based on the language used in the report. This is a general signal, not investment advice.
Where can I read the full article?
The full article is available at the original source, Livemint — see the "Read Original Article" link on this page.