Shares of Bajaj Finance surged more than 5 per cent in Monday’s trade, pausing their losing run of three straight sessions. The stock jumped 5.39 per cent to hit a day high of Rs 6,066.05 over its previous close of Rs 5,756.
JM Financial Institutional Securities has assigned a ‘Buy’ call on the counter with a target price of Rs 8,000.
“In Q3 FY23, Bajaj Finance delivered healthy profit after tax (PAT) of Rs 2,970 crore (40 per cent YoY/7 per cent QoQ), notwithstanding a tad softness in AUM growth (27 per cent YoY/6 per cent QoQ). We see no challenges to growth opportunities as it begins selling existing products at a higher number of physical locations, drives digital penetration in the existing customer base and enters newer categories,” the brokerage stated.
Pavitraa Shetty from Tips2trades said, “Excellent Q3 FY23 results comfortably beating Street estimates has led to a sharp uptrend in Bajaj Finance today. A daily close of above Rs 5,935 level could lead to targets of Rs 6,145-6,460 in the near term. Support will be at Rs 5,770.”
Around 74,000 shares changed hands today on BSE, which was higher than Bajaj Finance’s two-week average volume of 40,000 shares. Turnover on the counter stood at Rs 44.31 crore, commanding a market capitalisation (m-cap) of Rs 3,65,534.86 crore.
The stock was last seen higher than 5-day moving averages but lower than 20-day, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 45.86. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 35.85.
Bajaj Finance has an average target price of Rs 8,138.67, Trendlyne data showed, suggesting a potential upside of 34.75 per cent. The scrip has a one-year beta of 1.37, indicating high volatility.
In what could be seen as a rub-off effect, shares of Bajaj Finserv also climbed. The stock advanced 3.43 per cent to hit a day high of Rs 1,359.90 today against a previous close of Rs 1,314.85.
Tips2trades’ Shetty said, “Bajaj Finserv looks oversold and bullish on the daily charts. A daily close of above Rs 1,350 could lead to targets of Rs 1,429-1,550 in the near term.”
As per Trendlyne, Bajaj Finserv has an average target price of Rs 1,914.33, indicating a potential upside of 41.54 per cent.
Indian equity benchmarks were seen trading slightly lower in afternoon deals amid a volatile session today, dragged by banks, financials, consumer, metal and energy stocks.
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