Bajaj Finance Shares Surge Over 3% Amid Q4 Results, Brokerages Remain Bullish Despite Minor Earnings Miss Bajaj Finance’s stock surged over 3% in early trading on Thursday, extending gains from the previous day, following the NBFC’s Q4 financial results. Despite a slight miss on key earnings metrics, most brokerages retained bullish ratings on the stock, citing strong growth prospects and improving credit cost outlooks. The stock was trading at Rs 962.6, up 3.5% from Wednesday’s closing price of Rs 930. The company reported a 22% year-on-year increase in net profit to Rs 5,465 crore for Q4FY26, slightly below the CNBC-TV18 poll estimate of Rs 5,524 crore. Net interest income (NII) grew 20% to Rs 11,781 crore, also marginally below expectations of Rs 11,853 crore. Assets under management (AUM) rose 22.4% to Rs 5.1 lakh crore, crossing the Rs 5 lakh crore milestone, while new loans booked increased 20.5% to 12.89 million. Brokerages largely maintained positive outlooks, with HSBC, Nomura, Jefferies, and JPMorgan issuing “buy” or “overweight” ratings. HSBC highlighted management guidance of a 15-30 basis points decline in credit costs for FY27, projecting a 26.5% compound annual growth rate (CAGR) in earnings per share (EPS) over FY26-28. Nomura emphasized improving asset quality trends and higher profitability targets, with return on assets expected to range between 4.3-4.7%. Jefferies noted that lower credit costs and stronger fee income supported earnings, while AUM growth remained robust at 22%. JPMorgan, which assigned an “overweight” rating with a target price of Rs 1,080, stated the performance was largely in line with expectations, citing healthy asset quality and benign early delinquency trends despite external disruptions.#hsbc #bajaj_finance #jefferies #nomura #nbfc
IDFC First Bank Shares Rise on Q4 Earnings, Brokerage Views Split IDFC First Bank’s stock surged 4.79 percent to close at Rs 70.45 on Monday, driven by its Q4 FY26 earnings report and mixed reactions from brokerages. The results triggered a range of ratings, from “Sell” to “Buy,” with analysts divided on the bank’s near-term prospects but broadly acknowledging its improving fundamentals. The stock has become a focal point on Dalal Street, with discussions centered on its evolving business model and potential for sustained growth. The recent rally followed the bank’s quarterly financials, which highlighted steady earnings growth and progress in asset quality. While the stock attracted buying interest, the mixed brokerage sentiment reflects uncertainty about the bank’s ability to maintain momentum. Analysts noted that the bank’s core business trends are showing improvement, but challenges remain in areas like loan growth and deposit collection. Brokerage reactions varied significantly. On the bullish side, Jefferies and Nomura retained “Buy” ratings, setting target prices of Rs 82 and Rs 85, respectively. Both firms emphasized the bank’s strengthening asset quality and credit cost control, with Jefferies projecting a gradual improvement in return on assets toward 1 percent by FY28. Nomura also highlighted the potential for margins to stabilize in the long term. In contrast, UBS adopted a more cautious stance, maintaining a “Sell” rating and lowering its target to Rs 70. The firm cited near-term pressures on profitability and growth momentum, particularly in the context of a slowing economy. CLSA issued a “Hold” rating with a revised target of Rs 73, pointing to ongoing challenges in maintaining consistent performance.#ubs #clsa #jefferies #idfc_first_bank #nomura
IT Stock Under Rs 50: Motilal Oswal, Nomura See Up to 45% Return – Do You Hold It? A small-cap healthcare-focused IT services company has gained attention after brokerages Motilal Oswal and Nomura highlighted its potential for significant gains. The stock, currently trading at Rs 40, is positioned in the sub-Rs 50 category and is part of the Nifty Smallcap 100 index. Both brokerages have issued ‘Buy’ ratings, with Nomura setting a target price of Rs 55 and Motilal Oswal projecting Rs 58, implying upside potential of 37% and 45%, respectively. The company in question is Sagility, which has a market capitalisation of Rs 18,767.45 crore. Sagility’s stock has experienced a year-to-date decline of 22.91% and a 6.15% drop over the past year. However, it has shown recent resilience, rising 2.66% in the past week and 1.39% over the last month. The brokerages’ optimism is tied to the company’s growth prospects, particularly in the US healthcare sector, where outsourcing demand and AI adoption are expected to drive expansion. Motilal Oswal and Nomura have emphasized Sagility’s dual proposition of value and growth, citing factors such as outsourcing demand, regulatory changes, and cost pressures in the healthcare industry. The brokerages note that payer organizations in the US are increasingly focusing on cost optimization, compliance, and efficiency, which is leading to higher outsourcing of operations. These trends are expected to support Sagility’s volume growth over the medium term. Sagility provides services to payers and providers in the US healthcare sector, and Motilal Oswal highlighted the impact of regulatory changes, including CMS rate revisions, ACA subsidy adjustments, tariffs, and visa policies.#motilal_oswal #nifty_smallcap_100 #nomura #sagility #us_healthcare_sector
