Bajaj Finance Stock May Rally 22% After Morgan Stanley Call

Bajaj Finance Stock Gains Attention After Morgan Stanley Sees 22% Upside

Shares of Bajaj Finance are back in focus after global brokerage firm Morgan Stanley maintained a positive outlook on the company and assigned an “Overweight” rating with a target price of ₹1,120 per share. Based on the current market price, the target suggests a potential upside of nearly 22 per cent.

Bajaj Finance, one of India’s leading non-banking financial companies (NBFCs), operates across multiple segments,s including consumer lending, rural finance, SME loans, mortgages, commercial finance, and wealth management services. The company has built a strong presence in both urban and rural markets across the country.

The stock, with a market capitalisation of around ₹5.74 lakh crore, was recently trading near ₹923 per share, showing marginal gains during the session.

According to Morgan Stanley, Bajaj Finance continues to witness healthy demand across its lending businesses despite ongoing global geopolitical concerns. The brokerage highlighted that management commentary following the company’s Q4 performance remained positive, especially regarding loan growth and asset quality, indicating continued confidence in the company’s business momentum.

The report also noted that rising bond yields may slightly increase funding costs in the near future, which could put temporary pressure on profit margins. However, Morgan Stanley believes the company’s strong focus on technology, digital innovation, and AI-driven initiatives will help improve operational efficiency and customer engagement over the long term.

Bajaj Finance has also shown steady growth in its Assets Under Management (AUM). As of March 2026, the company’s total AUM stood at approximately ₹5.1 lakh crore. Mortgage loans remain the largest segment, contributing around ₹1.62 lakh crore or nearly 32 per cent of the overall portfolio.

Urban B2C lending accounts for more than ₹1.04 lakh crore, reflecting strong consumer demand. MSME lending reached ₹51,570 crore, while commercial lending stood at ₹33,839 crore. Rural B2C loans also witnessed healthy growth, touching ₹25,234 crore.

The company’s diversified lending portfolio across retail, rural, commercial, and secured lending segments continues to support its long-term growth outlook, making Bajaj Finance one of the closely watched financial stocks in the market.