Hong Kong-based brokerage firm CLSA has maintained an ‘Outperform’ rating on Bajaj Finance Ltd., one of India’s leading non-bank lenders. The brokerage has a price target of ₹11,000 per share on the stock, implying a potential upside of 28% from current levels.

CLSA wrote in its latest note, “Form is temporary, class is permanent.” It said that FY25 was a relatively weak year for Bajaj Finance, with growth moderating to 26% and Return on Equity (ROE) declining to 19% (for 9MFY25), driven by higher credit costs.

However, with asset quality concerns easing, CLSA expects Bajaj Finance to regain its ‘class’ from FY26 onward.

The foreign brokerage believes investor attention will shift from net interest margins (NIMs) and asset quality to growth.

Further, CLSA said that even if Return on Assets (ROA) declines from 4% currently to 3.5% over the next five years, a 25% annual growth in assets under management (AUM) would still translate to a healthy 22–23% CAGR in profit after tax (PAT).

Among large-cap stocks under its coverage and potentially across the Indian market, CLSA sees no other company offering such a healthy PAT growth over the next 3–5 years.

Of the 35 analysts that have coverage on Bajaj Finance, 25 of them have a ‘Buy’ rating, while five each have a ‘Hold’ and ‘Sell’ recommendation.

Shares of Bajaj Finance Ltd. settled 1.48% lower on Monday at ₹8,590.10. The stock has fallen in four out of the last five trading sessions. The stock has corrected 7% from its recent high of ₹9,260.05, which it had hit on March 25, 2025.