Synopsis:
Brokerages have turned bullish on major financial institutions, forecasting strong earnings growth and stock price gains.
Brokerage firms are bullish on leading Indian financial companies, citing strong growth prospects, diverse business models, and opportunities from structural shifts in the sector. They expect these companies to deliver strong earnings growth and see significant upside potential in their stock prices.
Here are the stocks with revised targets issued by brokerage firms.
1. Bajaj Finserv Ltd
Jefferies has maintained its ‘Buy’ rating on Bajaj Finserv with a target price of Rs 2,420, with an upside of 25.49 percent from CMP of Rs. 1,928.50. According to Jefferies, Bajaj Finserv aims for 15–22 percent growth in customers, revenue, and profit over the next five years, with its insurance arms focusing on margin gains and steady earnings. Core earnings are expected to grow 22 percent CAGR in FY25–28, and valuations are seen as reasonable.
About the Company
Bajaj Finserv Ltd. is the holding company of the Bajaj Group’s financial services businesses, catering to millions of customers with offerings that include financing for asset acquisition, general insurance for asset protection, life and health insurance for family and income security, as well as retirement and savings solutions.
With the market capitalization of Rs. 3,08,138.28 crore, the shares of Bajaj Finserv Ltd were trading at Rs. 1928.50, up by 0.8 percent from its previous day’s close price of Rs. 1913.50 per equity share.
2. Kotak Mahindra Bank Ltd
UBS has updated its rating from Neutral to Buy, with the target price increased to Rs. 2,450 from Rs. 2300, implying an upside of 24.66 percent from current market price of Rs. 1,965.30
According to UBS, Kotak is the best player in financial services because of its strong non-lending businesses, such as asset and wealth management, which are expected to grow 1.4-1.7x faster than lending. Kotak’s stock could be re-rated due to strong growth prospects, easing margin pressures, and superior ROA.
UBS also expects India’s financial sector profit pool to nearly double in the next five years, with Cholamandalam Investment & Finance, Power Finance Corporation and SBI Life emerging as top NBFCs and insurers.
About the Company
In February 2003, the RBI granted the first non-banking finance company in India a banking license: Kotak Mahindra Bank Ltd., formerly known as Kotak Mahindra Finance Ltd. In April 2015, the merger with ING Vysya Bank was completed.
The bank has 2,154 branches and 2,927 ATMs (including cash recyclers) in India as of June 30, 2025. It also has a presence abroad in GIFT City and the DIFC in Dubai. The bank serves both retail and corporate clients in both urban and rural areas through its four main business units: consumer banking, corporate banking, commercial banking, and treasury.
With the market capitalization of Rs. 3,90,744.66 crore, the shares of Kotak Mahindra Bank Limited were trading at Rs. 1965.30, up by 0.26 percent from its previous day’s close price of Rs. 1,960.30 per equity share.
Written by Akshay Sanghavi
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