Bajaj Finance clocks 52-week high as firm reports 33% growth in AUM in Q2; Morgan Stanley raises TP by Rs 800

Bajaj Finance share price NSE, Bajaj Finance share price target: Bajaj Finance shares, a subsidiary of Bajaj Finserv, on Wednesday, October 4, clocked a fresh 52-week high of Rs 8,043 apiece, surpassing an earlier peak of Rs 7,999.9 on the NSE, rising for a third straight session after the non-banking financial company (NBFC) released its Q2 business update. The NBFC's new loans booked during the July–September quarter rose by 26 per cent to 85.3 lakh as compared to 67.6 lakh recorded in the corresponding quarter of the previous fiscal. The counter gave up initial gains and ended at Rs 7,865, down Rs 102.6 or 1.29 per cent on NSE.

The company's assets under management (AUM) grew by 33 per cent to approximately Rs 290,200 crore as of September 30, 2023, as compared to Rs 218,366 crore in the same period a year ago. AUM in Q2 FY24 grew by approximately Rs 20,100 crore.

Here's how the counter moved on Wednesday: 

Source: NSE

Bajaj Finance's liquidity position remains strong; the consolidated net liquidity surplus stood at approximately Rs 11,400 crore as of September 30, 2023. The company’s deposits book stood at approximately Rs 54,800 crore as of September 30, 2023, compared to Rs 39,422 crore as of September 30, 2022, a YoY growth of 39 per cent.

Bajaj Finance share price target: Here’s how some of the top brokerages are reading the development:

Morgan Stanley has maintained an overweight rating and has raised the target price by Rs 800 to Rs 10,300 from Rs 9,500, the highest among other brokerages. Jefferies has maintained a buy stance with a target price of Rs 8,830 on Bajaj Finance, one of the top picks of the global brokerage within NBFCs. However, Citi has maintained a neutral stance with a target price of Rs 7,800.

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