Stocks to Sell: Foreign brokerage has warned about two big stocks. Due to low volumes, valuation concerns and rising NPAs, returns in these stocks may weaken in the near future. Know which of these stocks are in your portfolio…
Stock Sell Alert: On Tuesday, November 11, Sensex closed with a rise of 336 points at 83,871 and Nifty closed with a rise of 121 points at 25,695. Bajaj Finance shares fell 7.4% during trading. Meanwhile, big foreign brokerage houses have issued negative ratings on two stocks. These stocks are Bajaj Finance and Bajaj Auto. The brokerage has advised to remain alert regarding these in the coming times. He says that challenges like low volumes, increasing provisions and NPAs can impact the profitability and performance of these companies. Brokerages believe that even though the numbers of these companies are strong, their returns may remain weak in future due to economic and market risks. Know the names of these stocks and their target prices…
Bajaj Finance Share Price Target
Brokerage firm Bernstein has maintained underperform rating on Bajaj Finance and has kept the target price at Rs 640. The stock closed 7% lower at Rs 1,009.10 on Tuesday. Despite 24% growth in AUM and 23% growth in PAT, the brokerage marked rising risk in the loan book. This quarter gross NPAs have increased by 1.24% and net NPAs have increased by 0.60%. Incremental NPLs have reached nearly 2% and loan losses have increased by 205 basis points. MSME loan growth also slowed to 18%, while unsecured MSME loans declined by nearly 25%. The brokerage says rising credit costs and loan quality pressure could impact margins.
Valuation risk in Bajaj Auto share
Brokerage firm Morgan Stanley has maintained an underweight rating on Bajaj Auto. Even though the company performed well in Q2FY26 with net profit growing by 23.6%, analysts believe weakness in exports and stagnant domestic demand could limit the stock’s future performance. Bajaj Auto’s target price was slightly raised to Rs 8,137, but Morgan Stanley warned investors that consolidation may be necessary for some time after the recent sharp rise in the stock. The stock closed 1.46% higher at Rs 8,900 on Tuesday.
Disclaimer: This information is for information only. The stock tips or ratings given herein are not investment recommendations. Investing in the share market is subject to risks. Before making any investment, definitely consult your financial advisor or market experts.
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