Bajaj Finance's Share Price Surges 7% on Strong Q1 Update; Brokerages Increase Target
Bajaj Finance's stock price surged by more than 7% following a positive business update for the first quarter.
Bajaj Finance's stock price surged by more than 7% following a positive business update for the first quarter. Brokerages have raised their target price for the company. Bajaj Finance reported its highest-ever quarterly increase in customer numbers, adding 3.84 million customers in Q1FY24. The company experienced robust volume and loan growth, along with healthy acquisition of new customers.
During the April-June quarter, Bajaj Finance's loan book grew by 34% to 9.9 million, compared to 7.2 million in the same period last year. The total number of customers increased to 72.98 million as of June 30, 2023, up from 60.30 million in the previous year.
Assets under management (AUM) also saw significant growth, rising by 32% to approximately ₹270,050 crore in Q1FY24. Bajaj Finance recorded a net liquidity surplus of approximately ₹12,700 crore by the end of June 2023. The deposit book increased to ₹49,900 crore, showing a growth rate of 46% compared to the previous year.
Global brokerage CLSA upgraded Bajaj Finance's rating from 'Outperform' to 'Buy' and raised the target price to ₹9,000 per share. Morgan Stanley also maintained an overweight rating and increased the target price to ₹9,250 per share. Both brokerages highlighted the strong loan growth, volume growth, and healthy customer acquisition as positive factors for the company's performance.
Bajaj Finance's stock has shown significant growth this year, rallying nearly 18% so far. As of the latest trading update, the share price was trading 6.44% higher at ₹7,808.00 on the BSE.
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