India's Bajaj Finance outlook cautious on credits costs

** Shares of Bajaj Finance BAJFINANCE fall 2% to 6,598.45 rupees

** Broader Nifty 50 Index NIFTY up 0.6%

** Indian non-bank lender misses first-quarter profit estimates on higher provisions; forecasts improvement in loan losses only from October and NIM stabilisation in Q3

** At least eight of the 30 analysts covering the stock, reduced their target price post the results while the average rating is at "buy", median PT at 8,293.50 rupees

CREDIT COSTS KEEP OUTLOOK CAUTIOUS

** Jefferies ("Buy", trims PT to 7,780 rupees) cut earnings estimate for BJFN for financial years 2025 to 2027 on slower growth and higher credit costs

** Adds co's forecast indicates that BJFN will trim loan growth to ensure robust asset quality and stable NIM leading to moderation in retail loans

** Emkay Global Financial Services ("Buy", cuts PT to 9,000 rupees) found Q1 results satisfactory; pins profit miss on higher credit costs, trims earnings estimate for FY25-27

** Ambit Capital ("Sell", PT at 6,161 rupees) estimates about 50 basis points NIM compression in 2025 "implying further pain in subsequent quarters" on rising cost of funds