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Bajaj Finance Rating Upgraded by UBS: No Longer Among Lowest Targets
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CNBC TV18•23-09-2026, 13:10
Bajaj Finance Rating Upgraded by UBS: No Longer Among Lowest Targets
- •UBS upgraded Bajaj Finance's rating to "neutral" from "sell" and raised its target price to ’1,100 from ’910, indicating a 9% upside.
- •The upgrade removes UBS from the list of Bajaj Finance "bears" and those with the lowest price targets on the street.
- •UBS cited cyclical EPS upgrades driven by yield-accretive growth and strong asset quality for the upgrade, but maintained a "neutral" stance due to demanding valuations.
- •India is entering a strong credit growth cycle in unsecured lending, benefiting NBFCs more than banks, supported by healthy asset quality and abundant liquidity.
- •UBS also upgraded L&T Finance to "buy" and maintained "buy" ratings on Cholamandalm Investment Finance Company, Shriram Finance, and Poonawalla Fincorp.
Key Questions Answered
UBS upgraded Bajaj Finance from "sell" to "neutral" and raised its price target to ₹1,100 due to cyclical Earnings Per Share (EPS) upgrades driven by yield-accretive growth and strong asset quality.
UBS upgraded L&T Finance to "buy" from "neutral" with a raised target price of ₹380, while maintaining "buy" ratings for Cholamandalam Investment Finance Company, Shriram Finance, and Poonawalla Fincorp.
UBS noted that India is entering a strong credit growth cycle in unsecured lending supported by abundant system liquidity and stable household leverage over the past three years.
