Bajaj Finance share price jumps 5% amid satisfying Q1 numbers; brokerages divided – check price target here

The shares of Bajaj Finance jumped over 5 per cent to Rs 6237 per share, which is also a day’s level on the BSE intraday trade on Thursday amid satisfying first quarter numbers of the company.

The non-banking financial company (NBFC) — Bajaj Finance's consolidated net profit grew marginally by 4 per cent to Rs 1,002 crore in the first quarter of the financial year 2021-22, as compared to Rs 962 crore in the same quarter last year. 

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While the finance company’s Net Interest Income (NII) increased by 8 per cent to Rs 4,489 crore in Q1 FY22 as against Rs 4,152 crore in the year-ago quarter. 

Bajaj Finance also became the most gaining stock at market open today on Nifty Index, by over 3.5 per cent, while its twin Bajaj Finserv despite the decline in the profit grew by around 2 per cent at open.

At around 11:40 am, the shares of Bajaj Finance were trading at 4.71 per cent higher to Rs 6217.65 per share on the BSE, as compared to 1.12 per cent rise in the S&P BSE Sensex. In the last three months, the counter has surged over 33 per cent.

Even brokerages are divided on Bajaj Finance shares, as CITI maintains a Buy rating, Morgan Stanley has an Overweight stance, and Goldman Sachs gives a Sell call on the scrip.

CITI raising the price target to Rs 6,950 per share, lowers FY22/23 earnings by 11/3 per cent respectively. The brokerage says, tech strategy will be less ‘burn to grow’ and more cross-sell to existing customers.

Even Morgan Stanley cuts the EPS forecast after weaker-than-expected Q1 earnings while pointing out that stock looks fairly valued. Bajaj Finance has three Ps – Profits, Platform and Payments, that excite investors in ‘New-Age’ stocks, MS says setting a price target of Rs 6,850 per share.

While Goldman Sachs believes Bajaj Finance is facing another round of earnings downgrade in the near term. The brokerage downgrades the price target to Rs 4,479 per share, while stating that the it miss earnings due to difficult Macro conditions and slow growth in franchise products.