Mumbai: Shares of Bajaj Finance dropped 4.7% on Friday, after analysts flagged asset quality pressures in the Micro, Small and Medium Enterprises (MSME) segment after the first quarter results and highlighted the likelihood of limited near-term upside in the stock following the recent run-up.
“We think the company could see negative earnings revisions from downside risks to growth guidance and some stress buildup in the MSME book,” said JP Morgan in a client note.
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The stock, which closed at ₹913.65 on Friday, has fallen as much as 6.4% earlier in the day. The price target implies upsides of between 6% and 18% for most analysts. UBS’s price target suggests a downside of 18%.
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