Morgan Stanley adds Bajaj Finance to focus list, sees a compelling play on unsecured consumer revival

Global brokerage firm Morgan Stanley has added Bajaj Finance to its focus list, replacing Reliance, highlighting it as a compelling play on the unsecured consumer revival.

The investment firm stated that it recommends large private sector financials, consumer and industrial stocks, and IT services.

Bajaj Finance fits Morgan Stanley's "quality large cap thematic," possessing a tested business model and a long-standing track record. The firm anticipates the company will be a key beneficiary of the resurgence in unsecured consumer lending.


One of the crucial factors driving Morgan Stanley's positive outlook is the expectation of credit costs remaining below 200 basis points in FY26. This projection is expected to significantly boost Bajaj Finance's earnings per share (EPS) growth outlook for FY26 to over 25%.

Furthermore, Morgan Stanley believes Bajaj Finance will benefit from increased middle-class disposable income following the recent budget, as well as potential interest rate cuts. These factors are expected to further fuel the company's growth trajectory.

The investment firm also emphasizes that Bajaj Finance's current valuation offers upside potential compared to its historical performance and underlying fundamentals.

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This suggests that the stock is attractively priced relative to its growth prospects and financial health. Overall, the global brokerage firm's analysis paints a bullish picture for Bajaj Finance, citing its strong position in the consumer finance market, favorable macroeconomic factors, and attractive valuation.

Bajaj Finance share price history

The shares of Bajaj Finance, over the past year, recorded a 24.55% increase. The year-to-date (YTD) performance showed a 19.49% rise. Over the last six months, the price gained 25.22% while increasing by 20.13%. Meanwhile, over the last month, it rose by 13.89%.

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