Bajaj Finance shares jump 3% following Q1 business update, Morgan Stanley maintains 'overweight'

Morgan Stanley reiterated its bullish 'overweight' call.

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Shares of non-banking financial company Bajaj Finance Ltd soared on Friday, July 4, as the Bajaj group firm reported its business update for the quarter ended June.

Bajaj Finance reported a 25 percent year-on-year rise in its assets under management (AUM), which stood at around Rs 4.41 lakh crore as of June 30, 2025.

At 9.35 a.m., shares of the firm were quoting Rs 938.45, higher by 3.1 percent on the NSE.

During the first quarter, the company added Rs 24,750 crore to its AUM. Its customer base expanded to 106.51 million, up from 88.11 million in the same period last year, with 4.69 million new customers added in Q1FY26.

New loan bookings grew 23 percent year-on-year to 13.49 million, compared to 10.97 million in the first quarter of FY25. The deposit book also showed growth, rising 15 percent year-on-year to Rs 72,100 crore from Rs 62,774 crore a year ago.

International brokerage Morgan Stanley has maintained an overweight rating on Bajaj Finance, with a target price of Rs 1,050 per share. The brokerage said the company’s 25 percent year-on-year AUM growth will likely be viewed positively by investors, especially at a time when overall credit growth in the system is showing signs of moderation.

The broking house noted that Bajaj Finance's lower exposure to segments such as vehicle finance puts it in a stronger position compared to peers. This should help the company stay on track to meet its FY26 AUM growth guidance of 24 to 25 percent.

Customer additions also remained healthy, with 4.69 million new customers added in the June quarter, marking a 5 percent increase year-on-year. The management is aiming to add between 14 to 16 million new customers in the current financial year.

Morgan Stanley added that investors will now closely watch the company’s credit cost trajectory and the management’s commentary on both AUM growth and asset quality in the coming quarters.

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