Bajaj Finance shares gain nearly 4% as Morgan Stanely sees over 22 per cent potential gains

Shares of Bajaj Finance traded with sharp gains of over 3 per cent as the overall market sentiment remained ahead of the key Fed event scheduled later today. At the last count, shares of the NBFC firm traded 3.7 per cent higher at Rs 7,635.95 per share on the BSE, while at the day's high it scaled to levels of 7,641 per share.

The stock scaled its all-time high of Rs 8,190 last year on October 6.

Why sharp spurt in Bajaj Finance shares?

The sharp spurt in the Bajaj Finance stock pushed the stock as the top Nifty gainer.  The brokerage said that the company's focus on standalone financials will gradually rise. Furthermore, the brokerage foresees that in the immediate term, both the company as well as investors are expected to largely focus on consolidated metrics.

Also, the global brokerage finds the company's stock attractively valued relative to return on equity (ROE) and earning per share (EPS) growth.

Morgan Stanley has trimmed FY25-27 consolidated EPS estimates to 1.2-1.6 per cent. 

Prefer to wait to see the stock performance of both entities, to be also able to judge the level of holding company discount,added the brokerage.

Bajaj Finance stock performance

Bajaj Finance shares in the last one year have underperformed with a return of just over 1 per cent.