The shares of Bajaj Finance sharply rallied more than 7% to hit a fresh 52-week high on Friday, adding more than Rs 46,445 crore to its total market capitalisation after the company’s Q1 earnings print impressed the bulls of Dalal Street.Bajaj Finance shares sharply rallied to a fresh 52-week high of Rs 1,128 apiece on Friday. The stock is on track to record its sharpest single-day surge in three months. This comes after the non-banking financial company reported a 28% year-on-year growth in its standalone net profit at Rs 6,081 crore for the first quarter of FY27.Its net interest income (NII) increased 23% YoY to Rs 12,571 crore, while AUM rose by Rs 36,969 crore during the first quarter of the ongoing financial year. The company booked 1.6 crore new loans in Q1, up 20% from 1.35 crore in Q1 of FY26. Its customer franchise rose 17% to 12.44 crore from 10.65 crore a year ago, and the company added 51 lakh customers during the quarter. The NBFC’s asset quality also improved during the quarter.Should you buy, sell or hold Bajaj Finance shares?Most of the domestic and international brokerages have ‘Buy’ calls on the shares of Bajaj Finance, but some continue to remain cautious.Motilal Oswal upgraded its rating on the shares of Bajaj Finance to ‘Buy’ and increased its target price to Rs 1,300 apiece, implying 23% upside potential. The domestic brokerage said the NBFC is firing on all cylinders, moving beyond the earnings normalisation phase and entering a period of structurally higher earnings growth.Nomura continues to like Bajaj Finance among NBFCs and maintains its ‘Buy’ rating with a target price of Rs 1,140 apiece, implying an upside potential of more than 8% from the stock’s previous closing price. The international brokerage said Bajaj Finance’s strong asset quality performance stole the show.CLSA maintained its ‘Outperform’ rating and increased its target price to Rs 1,300 apiece. The international brokerage quipped that Bajaj Finance proved its “iron man” status in Q1 FY27. It also said that the firm’s asset quality stole the show. CLSA believes the company can comfortably beat its credit cost guidance of 1.45-1.6% for the year.Citi has a ‘Buy’ call on the stock and raised its target price to Rs 1,300 apiece. While noting that the company’s management opted to defer guidance revision to post-Q2 FY27, Citi noted that the commentary on underlying business trends remained unequivocally constructive.HSBC also has a ‘Buy’ call on the shares, while raising the target price to Rs 1,270 apiece. Q1 was underscored by extremely strong quarterly performance across metrics, it said, highlighting the increase in AUM growth, NIM and credit cost estimates. Bajaj Finance is seeing improvement in asset quality trends in personal and business loans both at industry and company levels, HSBC noted.Also read | Bajaj Finance shares rally after Q1 results. What Nomura, Nuvama, other brokerages expectWhich brokerages remain cautious?Nuvama, however, has a ‘Hold’ rating on the stock due to its higher valuations. It increased its target price for Bajaj Finance shares to Rs 1,175 apiece from Rs 1,050 apiece, with the latest target price implying over 11.5% upside potential. Bernstein, meanwhile, has an ‘Underperform’ rating on the stock, with a target price of Rs 840 apiece, implying 20% downside potential. It, however, noted that the NBFC reported a strong quarter, with healthy balance sheet growth & sharply improving asset quality driving earnings momentum.Technical view on Bajaj FinanceBajaj Finance retested its 20-day EMA and witnessed a strong rebound in today's session, reinforcing the underlying bullish sentiment, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. He noted that the stock on July 1 had registered a breakout above a downward-sloping trendline resistance. Following the breakout, it rallied higher before retesting the earlier resistance zone, which has now turned into a strong support area, he said.“The RSI, which had been consolidating around the 60 mark, has turned higher, indicating a revival in bullish momentum. Meanwhile, the DI lines have widened, with DI+ positioned well above DI-, highlighting strong buying interest and sustained bullish control,” the analyst explained.The zone of Rs 1,075–1,070 is expected to act as a strong support, and the overall trend is likely to remain bullish as long as the stock sustains above this zone, according to Shah.Also read | Bajaj Finance Q1 Results: Profit jumps 28% YoY to Rs 6,081 crore, NII surges 23%(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)