Bajaj Finance, Waaree Engineering, and Other Key Stocks to Monitor Today
Morgan Stanley has reaffirmed its overweight rating on Bajaj Finance, raising the target price from Rs 1,090 to Rs 1,120. The financial services firm highlighted a significant 26% year-on-year increase in the company’s adjusted profit before tax for the January-March quarter of FY26, surpassing expectations. Additionally, Bajaj Finance reported improved credit costs due to a reduction in bad loans. The management has projected a 22-24% growth in assets under management (AUM) for FY27, with net credit cost guidance set between 145-160 basis points.
Bajaj Finance’s Strong Performance
Bajaj Finance has demonstrated robust financial performance, particularly in the fourth quarter of FY26. The company’s adjusted profit before tax rose by 26% compared to the previous year, reflecting its strong operational efficiency. Analysts noted that this performance exceeded market expectations, showcasing the company’s resilience in a competitive landscape. The improvement in credit costs, attributed to a decline in bad loan formation, further underscores the company’s effective risk management strategies. Looking ahead, Bajaj Finance’s management has set ambitious growth targets, forecasting a 22-24% increase in AUM for FY27. This optimistic outlook is complemented by a net credit cost guidance of 145-160 basis points, indicating a focus on maintaining asset quality while pursuing growth.
Navin Fluorine’s Impressive Earnings
Jefferies has issued a buy rating for Navin Fluorine, setting a target price of Rs 8,385. The company reported impressive earnings in Q4FY26, with a 19% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) and a 30% increase in profit after tax (PAT). Both figures surpassed analysts’ expectations, driven by strong performance in the specialty chemicals and contract development and manufacturing organization (CDMO) segments. The company is well-positioned for future growth, bolstered by multi-year contracts in CDMO and agro-chemicals, as well as potential expansions in data center cooling products and R32 capacity. Analysts are optimistic about Navin Fluorine’s earnings visibility for FY27-FY28, supported by a net cash-positive balance sheet.
IIFL Finance’s Growth Trajectory
HSBC has given IIFL Finance a buy rating with a target price of Rs 550, following the company’s robust performance in Q4FY26. The firm reported healthy growth in assets under management (AUM) and an improvement in asset quality, achieving a return on equity (RoE) of approximately 18%. Analysts believe that IIFL Finance is entering a strong earnings upcycle, benefiting from the cyclical nature of microfinance institutions (MFIs) and a recovery in housing finance. As a result, analysts have revised the company’s earnings estimates for FY27-FY28 upward, reflecting expectations of lower credit costs and continued growth in its core business segments.
Federal Bank’s Steady Performance
JP Morgan has assigned a neutral rating to Federal Bank, with a target price of Rs 305. The bank’s core net profits for Q4FY26 reached Rs 1,150 crore, marking an 11% year-on-year increase that aligns with market estimates. The recurring net interest income (NII) also saw a 14% rise, reaching Rs 2,720 crore, while the core net interest margin (NIM) improved slightly to 3.20%. Federal Bank maintains a significant market share of 19.72% in remittances as of April-December FY26, a key metric that analysts will monitor closely, especially in light of the ongoing geopolitical tensions in West Asia. Current valuations suggest that the stock is fairly valued, reflecting a stable outlook for the bank amidst market fluctuations.
Waaree Engineering’s Revenue Growth
Nomura has issued a buy rating for Waaree Engineering, setting a target price of Rs 3,750. The company reported a revenue increase in Q4FY26 that exceeded both Nomura’s and consensus estimates by 12%, driven by higher sales volumes. However, the company’s EBITDA fell short of expectations due to a significant contraction in gross margins. Management has provided guidance for EBITDA in FY27, estimating between Rs 7,000 crore and Rs 7,700 crore. Additionally, the board has approved a substantial fundraise of Rs 10,000 crore, indicating a proactive approach to support future growth initiatives and enhance operational capabilities.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
