Bajaj Finance Share Price: Why is NBFC stock among top gainers on Nifty 50 and BSE Sensex today?

Bajaj Finance shares gained nearly 2.5 per cent on Wednesday, emerging as one of the notable gainers in the market, after brokerages retained a positive view on the non-banking financial company.

The stock was trading at Rs 1,033.80, up Rs 25 or 2.48 per cent, as of 10:42 am on September 23. At the time of writing this report, the NBFC stock was among the top gainers of the Nifty 50 and BSE Sensex.

The gains came after Jefferies retained Bajaj Finance among its top picks following a management roadshow. The brokerage maintained a target price of Rs 1,280, while UBS upgraded the stock to neutral from sell and raised its target to Rs 1,100 from Rs 910.

At the current market price of Rs 1,033.80, Jefferies' target of Rs 1,280 implies an upside of about 23.8 per cent. UBS' revised target of Rs 1,100 implies an upside of about 6.4 per cent.

A key reason behind the positive movement is the management's confidence in the company's near-term and long-term growth prospects.

According to Jefferies, management expects strong demand, asset quality and operating efficiencies to offset some pressure from slightly lower net interest margins (NIMs) in the near term.

The management also indicated that the current operating environment remains supportive, with nominal GDP growth, GST collections and personal tax collections providing a favourable backdrop.

Jefferies said management expects the company to use these near-term tailwinds to build resilience rather than simply focus on growth.

Bajaj Finance may also benefit from improving asset quality conditions. Jefferies noted that the government's credit guarantee scheme for small and medium enterprises has disbursed $24-25 billion, largely through public sector banks, which has helped ease concerns around asset quality.

Jefferies retained Bajaj Finance among its top picks and kept its price target at Rs 1,280. Against the current price of Rs 1,033.80, this target represents an upside of around 23.8 per cent.

The brokerage expects Bajaj Finance to remain one of the faster-growing large-cap companies. It said management is confident of achieving more than 20 per cent growth and a high return on equity over the next 10 years.

Bajaj Finance currently has assets under management (AUM) of around Rs 5 trillion. Management expects this to rise to Rs 40 trillion over the next 10 years, implying a compound annual growth rate of around 23 per cent.

The company also expects profits to grow faster than AUM, supported by deeper customer reach, new products and India's economic growth.

UBS upgraded Bajaj Finance to neutral from sell and raised its target price to Rs 1,100 from Rs 910. The revised target represents an increase of Rs 190, or around 20.9 per cent, from its earlier target.

At the current market price of Rs 1,033.80, the new UBS target indicates an upside of approximately 6.4 per cent.

The change in target comes as the brokerage takes a more constructive view of the company's outlook compared with its earlier assessment.

Jefferies also highlighted Bajaj Finance's focus on artificial intelligence (AI). The management is using AI across different business verticals to improve efficiency and scale operations. Jefferies said Bajaj Finance is among the top users of computing capacity from key technology vendors in India.

Senior leadership is spending around 20 per cent of its time on AI-related initiatives, while employee use of internal AI bots for training and other activities is increasing.

The brokerage said these initiatives have helped improve employee productivity and customer monetisation through applications such as voice-data analytics and automated customer identification.

Bajaj Finance also expects only moderate branch expansion, at around 5 per cent CAGR, along with lower staff addition requirements. Jefferies estimates that this could result in a structural 25-40 basis point annual reduction in cost to net total income, potentially supporting return on assets.

Despite the positive outlook, Jefferies identified several risks to its valuation. These include slower-than-expected growth, greater-than-expected NIM compression and deterioration in asset quality.

Management also indicated that there could be one or two policy rate hikes. In such a situation, Bajaj Finance expects to manage higher funding costs through asset-liability management and pricing, while lower operating expenses and credit costs could partly offset NIM pressure.

The company plans to build resilience by potentially reducing growth in riskier segments, aligning fee pools and creating additional provision buffers.

Bajaj Finance shares have gained 6.34 per cent year-to-date, while the stock is up 0.91 per cent over one year. The stock's 52-week high is Rs 1,176.40, recorded on August 3, 2026, while its 52-week low is Rs 787.90, recorded on March 23, 2026.