Bajaj Finance dazzles in trade post-Q1 business update; Morgan Stanley revises target price to Rs 9,250

Bajaj Finance share price: Shares of the Bajaj Finance duo dazzled in trade on Tuesday, July 4. The stock of Bajaj Finance zoomed 8 per cent to hit a 52-week high of Rs 7,916.70 on the BSE in the early morning trade, while Bajaj Finserv jumped as much as 5.99 per cent to hit a high of Rs 1632.95 against the previous close of Rs 1,540.65 on the BSE. 

In its Q1 business update, Bajaj Finance said that its new loans booked during Q1 FY24 grew by 34 per cent to 9.94 MM as compared to 7.42 MM in Q1 FY23. Assets under management (AUM) grew by 32 per cent to around Rs 270,050 crore as of 30 June 2023, as compared to Rs 204,018 crore as of 30 June 2022. The Company recorded the highest-ever quarterly increase in its AUM of approximately Rs 22,700 crore in Q1 FY24.

Further, it said that its consolidated net liquidity surplus stood at approximately Rs 12,700 crore as of June 30, 2023. The company's liquidity position remains strong. The deposit book stood at approximately Rs 49,900 crore as of June 30, 2023, as compared to Rs 34,102 crore as of June 30, 2022, a YoY growth of 46 per cent.

CLSA UPGRADES BAJAJ FINANCE

Post the update, CLSA upgraded the stock to outperform from buy with a target price of Rs 9,000 from Rs 6,600 earlier. In its note, the global brokerage said the company reported very strong quarterly numbers for the June quarter. While it was expected that the company would post 6 per cent - 7 per cent QoQ AUM growth, Bajaj Finance delivered 9 per cent QoQ growth. New customer acquisition remains healthy, and volume growth in disbursements remains strong at 34 per cent YoY, the brokerage added.

Jefferies also remains bullish on Bajaj Finance. It has maintained 'BUY" on the stock with a target price of Rs 8,310. Morgan Stanley remains overweight. The target price stands at Rs 9,250 from Rs 8,500 earlier.

BAJAJ FINANCE SHARE PRICE HISTORY

Over the past year (from July 5, 2022, to today's close), shares of the company have jumped nearly 39 per cent, Trendlyne data show. In comparison, the benchmark Nifty50 has rallied 22.6 per cent during the window.

ABOUT BAJAJ FINANCE

Bajaj Finance is a subsidiary of Bajaj Finserv. It is a deposit-taking NBFC registered with the RBI and is classified as an NBFC investment and Credit Company (NBCC-ICC). It has a diversified lending portfolio across retail, SMEs, and commercial customers with a significant presence in both urban and rural India.