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Jefferies India's top stock recommendation: Bajaj Finance shares are one of the beaten-down stocks in the Indian stock market. Bajaj Finance share price has fallen around 10% in one month. In YTD, Bajaj Finance shares have delivered a negative return, correcting around 2.50%. However, it figures in Jefferies India's top stock pick. The Jefferies India report dated 2 October 2026 has predicted a trend reversal in the stock, setting a Bajaj Finance share price target 35% above the current market price. Jefferies India report dated 2 October 2026 says the Bajaj Finance board has approved a ₹175bn ( ₹17,500 crore) capital raise ( ₹58bn ( ₹5,800 crore) preferential warrants to BFS & ₹117bn ( ₹11,700 crore) QIP). Tad above our expected level; 3% of mkt cap & 13% of FY27E net worth. While leverage is fair at 4.9x with a retained ROE of 17%, strong loan growth (23%), staggered monetisation of the 87% stake in BHFL, & mgt succession in Mar-28 may have led to the raise. This can lift FY28e BVPS by 8%, EPS is flat & ROE tapers marginally. BAF stays among our top picks. Decoding the structure of the fundraise, the Jefferies India report said, "The raising involves ₹117bn ( ₹11,700 crore) in QIP and ₹58bn ( ₹5,800 crore) of warrants being assigned to Bajaj Finserv (BAF's promoter with 51% stake). It will need to invest 25% of ₹58bn ( ₹5,800 crore) at the time of warrant allocation, with the balance within 18 months. Bajaj Finserv has ₹45-50bn ( ₹4,500 crore to ₹5,000 crore) in cash and liquid investments, ~40% of standalone net worth, and may be able to use dividends from subsidiaries (including BALIC and BAGIC, which operate with a high Solvency Ratio of 285% and 254% respectively vs. norm of 150%) to mobilise funds towards balance investments." Bajaj Finance share price today is ₹947.50 apiece on the NSE, and Jefferies India report has predicted Bajaj Finance share price target of ₹1,280, up 35% from the current market price. Sharing the rationale behind such a whopping upside in Bajaj Finance share price, Jefferies India report said, "Our PT (Price Target) of ₹1,280 is based on SoTP valuation. Standalone entity is valued at 5x Sep-28E P/BV. Key risks to our valuation include a slowdown in growth, higher-than-expected NIM compression, and deterioration in asset quality. Upside risks include stronger-than-expected growth in consumer durable and rural financing business, and further improvement in operating efficiencies and reduction in cost ratios." Bajaj Finance is gearing up for one of its biggest capital-raising exercises, with the company’s board approving a QIP of up to ₹11,700 crore alongside a ₹5,800 crore preferential issue of warrants to promoter and holding company Bajaj Finserv. The move comes as the NBFC looks to strengthen its capital base, with the proposed transactions together amounting to as much as ₹17,500 crore. The announcements came after the boards of both companies met on October 1, with the proposed fundraise subject to applicable regulatory and statutory approvals, including shareholder approval. Bajaj Finance said it would seek shareholder approval for both the QIP and preferential issue through an Extra Ordinary General Meeting. The issue price for the warrants will be determined at a later stage in accordance with applicable law. Bajaj Finance said the price would be determined by its board or a duly constituted committee and would not be below the applicable floor price under the SEBI ICDR Regulations, subject to required pricing adjustments. Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions. Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91). Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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