Why Bajaj Finance Shares Are Surging Today

Shares of Bajaj Finance extended gains on Wednesday as the company released its Q4 business updates.

What Happened: The company late on Tuesday released its business update for the fourth quarter of FY23. The company recorded the highest-ever increase in customer franchise in FY23 as customers grew 11.5 million to 69.1 million.

The company also booked the highest-ever loan new loans of 29.6 million in FY23. “New loans booked during Q4 FY23 grew by 20% YoY to 7.6 MM as compared to 6.3 MM in Q4 FY22,” the NBFC added in a regulatory filing.

See Also: Paytm Shares Continue Winning Streak As Payments And Loan Business’ Q4 Growth Impresses Investors

The company’s deposit books also remained healthy at ₹44,650 crore as of 31 March 2023 as compared to
₹ 30,800 crore as of 31 March 2022, a YoY growth of 45%.

The company’s performance impressed several global analysts. Morgan Stanley maintained its overweight rating for the stock with a price target of ₹8,000- a 40% upside from the stock’s last closing price of ₹5,713. Analysts noted that the customer additions in the quarter remained strong and loan bookings growth beat estimates.

Analyst firm Jefferies maintained the ‘buy’ rating with a price target of ₹7,280. Global brokerage firm CLSA upgraded the stock’s rating from ‘underperform’ to ‘outperform’ revising the target price to ₹6,600. The firm expects the lending giant to outperform its peers going forward seeing that the loan growth in this quarter was better than the December quarter.

Price Action: Bajaj Finance share price was up 1.04% to trade at ₹5,772.50.

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Posted In: Analyst RatingsMoversTrading Ideasbajaj financeCLSAJefferies FinancialMorgan Stanley Capital International