Bajaj Finance shares soar post NBFC's Q3 update—here's what brokerages suggest

Bajaj Finance share price NSE, Bajaj Finance 2024 Q3 update: Bajaj Finance shares on Thursday gained on D-Street after its Q3 update, triggering brokerages to give a thumbs up to the NBFC. The Bajaj Finance stock emerged as the Nifty 50's top gainer, rising over 4.7 percent to touch the day's high of Rs 7,733.95 on the NSE in early morning deals. The counter closed at Rs 7,698.6, up by Rs 313.8 or 4.25 per cent on NSE.

The company's new loan book has been at Rs 9.86 million in the third quarter as against Rs 7.84 million in the same period last year, registering 26 per cent year-on-year (YoY) growth. Deposits at the non-banking finance company (NBFC) also logged 35 per cent YoY growth, as per the company update dated January 3.

Here are some key details mentioned in the regulatory filing:

• Customer franchise as of December 31, 2023 stood at 80.41 MM as compared to 66.05 MM as of December 31, 2022. In Q3 FY24, the customer franchise increased by 3.85 MM.
• The company's assets under management (AUM) grew by 35 per cent to approximately Rs 311,000 crore as of December 31, 2023, compared to Rs 230,842 crore YoY. AUM in Q3 FY24 grew by approximately Rs 20,700 crore.
• The consolidated net liquidity surplus stood at approximately Rs 11,600 crore as of December 31, 2023. The company’s liquidity position remains strong.

Bajaj Finance share price target: Post-Q3 update; here's what the brokerages suggest:

Morgan Stanley has maintained an overweight rating on Bajaj Finance and has placed the target at Rs 10,000. The global brokerage sees value and volume growth as well as strong customer acquisition. The brokerage said in its note that 33–34 per cent FY24 AUM growth is possible. Morgan Stanley is positive on margin considering various factors that have caused an overhang on stock.

Moreover, Nomura, too, has continued its buy call on the NBFC stock. Mentioning the Q3 update and strong performance across metrics, the global brokerage has placed the target at Rs 9,500. The new customer addition of 3.85 million during the quarter was the highest ever, the brokerage added.

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