Bajaj Finserv shares rise 4% despite Goldman Sachs' sell call; Check target price
Bajaj Life recorded 40% YoY growth in value of new business (VNB), with its 12-month new business margin at 20.8%. Goldman Sachs said the business has room for further expansion.
- Nov 4, 2026,
- Updated Nov 4, 2026 11:48 AM IST
Shares of Bajaj Finserv Ltd climbed 4% in Wednesday's trade, despite Goldman Sachs maintaining its Sell rating on the stock and reducing its 12-month target price to Rs 1,690 from Rs 1,780. The brokerage said the company's Q2 FY27 performance was broadly in line with expectations, as strong growth at Bajaj Finance and Bajaj Life was partly offset by weaker underwriting performance at Bajaj General.
Goldman Sachs has lowered its earnings per share (EPS) estimates for FY27-FY29 by around 4%, factoring in faster assets under management (AUM) growth and improved profitability at Bajaj Life, while accounting for lower profitability expectations at Bajaj General. The revised target price is based on the brokerage's sum-of-the-parts valuation framework.
The stock touched a high of Rs 1,790 during the session, rising 4.13% from its previous close of Rs 1,719. It opened at Rs 1,716 and touched a low of Rs 1,706.55.
At the group level, Bajaj Finserv's revenue grew around 17% year-on-year (YoY) in the September quarter. Consolidated profit after tax increased 23% to Rs 27.6 billion, with growth reaching around 22% after excluding mark-to-market movements, Goldman Sachs said.
Among the group's businesses, Bajaj Finance remained a key growth driver. Goldman Sachs raised its FY27 AUM growth expectation to 26-27%, while retaining its medium-term growth outlook of 20-25%. Management expects the operating expenses-to-net interest income ratio to improve by 25-40 basis points in FY27. However, the brokerage expects a slightly higher net interest margin headwind than its earlier guidance of 10-15 basis points of compression.
Bajaj Life recorded 40% YoY growth in value of new business (VNB), with its 12-month new business margin at 20.8%. Goldman Sachs said the business has room for further expansion.
Bajaj General, however, remained a drag on the group's performance. Gross written premium rose 10% YoY to Rs 70.6 billion. Excluding tender-driven crop and government health business, it increased 21% to Rs 56.4 billion, supported by growth in health and motor insurance. However, the claim ratio rose to 83.7% from 75.8%, while the combined ratio increased to 104.5% from 102.3%.
Shares of Bajaj Finserv Ltd climbed 4% in Wednesday's trade, despite Goldman Sachs maintaining its Sell rating on the stock and reducing its 12-month target price to Rs 1,690 from Rs 1,780. The brokerage said the company's Q2 FY27 performance was broadly in line with expectations, as strong growth at Bajaj Finance and Bajaj Life was partly offset by weaker underwriting performance at Bajaj General.
Goldman Sachs has lowered its earnings per share (EPS) estimates for FY27-FY29 by around 4%, factoring in faster assets under management (AUM) growth and improved profitability at Bajaj Life, while accounting for lower profitability expectations at Bajaj General. The revised target price is based on the brokerage's sum-of-the-parts valuation framework.
The stock touched a high of Rs 1,790 during the session, rising 4.13% from its previous close of Rs 1,719. It opened at Rs 1,716 and touched a low of Rs 1,706.55.
At the group level, Bajaj Finserv's revenue grew around 17% year-on-year (YoY) in the September quarter. Consolidated profit after tax increased 23% to Rs 27.6 billion, with growth reaching around 22% after excluding mark-to-market movements, Goldman Sachs said.
Among the group's businesses, Bajaj Finance remained a key growth driver. Goldman Sachs raised its FY27 AUM growth expectation to 26-27%, while retaining its medium-term growth outlook of 20-25%. Management expects the operating expenses-to-net interest income ratio to improve by 25-40 basis points in FY27. However, the brokerage expects a slightly higher net interest margin headwind than its earlier guidance of 10-15 basis points of compression.
Bajaj Life recorded 40% YoY growth in value of new business (VNB), with its 12-month new business margin at 20.8%. Goldman Sachs said the business has room for further expansion.
Bajaj General, however, remained a drag on the group's performance. Gross written premium rose 10% YoY to Rs 70.6 billion. Excluding tender-driven crop and government health business, it increased 21% to Rs 56.4 billion, supported by growth in health and motor insurance. However, the claim ratio rose to 83.7% from 75.8%, while the combined ratio increased to 104.5% from 102.3%.