Why Bajaj Finance Shares Hit New 52-Week High Today

Shares of Bajaj Finance continued to make gains for the sixth straight session on Tuesday as the company posted its business updates for the quarter ended June.

What Happened: As of June 30, 2023, the non-banking financial company’s deposit book reached around ₹49,900 crore, reflecting a year-on-year growth of 46% from ₹34,102 crore on June 30, 2022.

During the first quarter of FY24, new loans recorded a growth of 34%, with 9.94 million loans booked compared to 7.42 million loans in the first quarter of the previous financial year.

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The assets under management (AUM) saw a 32% growth, amounting to approximately ₹2.7 lakh crore on June 30, 2023, compared to ₹2.04 lakh crore on June 30, 2022. The company achieved its highest-ever quarterly increase in AUM, with an addition of approximately ₹22,700 crore during the quarter ended June.

Analysts’ Reactions: The company’s numbers also impressed analysts. BofA Securities maintained its “buy” rating for the stock raising the price target to ₹8,700 from ₹8,130. The firm noted that the company was off to a good start this new financial year with impressive growth in AUM.

Morgan Stanley also maintained its “overweight” rating for the stock with a price target of ₹9,250 – indicating an over 25% upside from the stock’s last closing price of ₹7,338. The firm said that the strong growth in AUM should dispel worries about loan growth.

Price Action: Bajaj Finance’s share price was up 7.72% to trade at ₹7,899 as the markets opened on Tuesday. Shares of the company rocketed over 8% to hit a new 52-week high of ₹7,918.

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