Bajaj Finserv shares rise 2%, extend gains after Q2 results. Why Jefferies reduced target price but still sees 34% upside

The shares of Bajaj Finserv rose another 2% on Wednesday, extending gains after the company reported a 23% year-on-year increase in consolidated net profit to Rs 2,758 crore for the July-September quarter of FY27, with Jefferies reducing target price but maintaining its ‘Buy’ call.

Bajaj Finserv shares had gained around 2% on Tuesday as well after the company announced the earnings, reporting a 17% YoY increase in revenue from operations to Rs 43,416 crore for the second quarter of the ongoing financial year 2027, from Rs 37,215 crore reported in the year-ago period. The shares of the company rose further to Rs 1,749 apiece on Wednesday morning.

Among its segments, Bajaj Finance’s quarterly net profit increased by 29%, while loan losses and provisions increased by 4% to Rs 2,166 crore. Its assets under management (AUM) increased by 26% YoY to stand at around Rs 5.85 lakh crore as of September 30, 2026.

Also read | Bajaj Finserv Q2 Results: Net profit jumps 23% YoY to Rs 2,758 crore

Its subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities, recorded growth of 18% and 36%, respectively, in profit after tax.

Bajaj General’s assets under management (AUM), meanwhile, increased around 4% YoY to Rs 34,974 crore at the end of the quarter under review. Its net earned premium for Q2 increased by 23% YoY to Rs 2,947 crore, from Rs 2,404 crore in the corresponding quarter of the previous financial year.

Jefferies on Bajaj Finserv share price

Jefferies maintained its ‘Buy’ rating on the shares of Bajaj Finserv but reduced its target price of Rs 2,300 apiece from Rs 2,550 apiece. The latest target price implies around 34% upside potential.The international brokerage noted that Bajaj Finserv continued to deliver a 25% YoY rise in core profit, led by strong growth for Bajaj Finance and Bajaj Life Insurance, dragged by weaker trends for Bajaj General Insurance. While the healthcare business saw a 33% YoY fall in revenues due to some regulation changes, the mutual fund segment continues to ramp-up.

Jefferies trimmed its estimates for core profit by 1-3% and sees Bajaj Finserv delivering 23% earnings CAGR over FY26-29. The international brokerage said the company’s valuations are attractive, implying 33% discount to value of stake in Bajaj Finance and 18x FY28 PE. It lowered the target price to account for the estimates rejig and lower multiples for life insurance and general insurance, and an increased holdco discount.

Bajaj Finserv share price

Bajaj Finserv shares have gained around 4% in a week but dropped nearly 1% in a month. The stock is overall down 16% in 2026 so far, underperforming the broader Nifty 50 index which dropped over 9% at the same time.

The shares of the company have fallen 17% in one year. In the longer term, Bajaj Finserv shares gained around 12% in three years but dropped more than 2% in five years.

Also read | US midterm elections: Can Trump’s pain be Dalal Street’s gain? Analysts estimate impact in 3 possible scenarios

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.