Shares of Bajaj Finance slipped nearly 2 per cent in Tuesday’s trade to slip below the Rs 5,900 mark amid heavy volumes. The stock fell 1.96 per cent to hit a day low of Rs 5,876.45 over its previous close of Rs 5,993.80. The scrip has been in focus after reporting lower-than-expected AUM (Assets Under Management) growth, analysts said. Bajaj Finance has lost 10.40 per cent in the last five sessions. The support on the counter could be seen at Rs 5,728.
AUM grew by 27 per cent to approximately Rs 2,30,850 crore as of December 31, 2022, as compared to Rs 1,81,250 crore in the same period a year ago, the non-banking financial company (NBFC) said in an exchange filing. AUM in Q3 FY23 grew by approximately Rs 12,500 crore, it added.
A total of 68,000 shares changed hands today, which was higher than Bajaj Finance’s two-week average volume of 64,000 shares. Turnover on the counter stood at Rs 40.50 crore. At this price, the shadow lender commanded a market capitalisation (m-cap) of Rs 3,57,143.59 crore.
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Analysts largely felt that the counter looked ‘oversold’. One analyst suggested a ‘buy’ call only on a close above Rs 6,100 level, while another said investors to enter near 5,600-5,700 levels.
Pavitraa Shetty from Tips2trades said, “Bajaj Finance looks oversold on the daily charts with strong resistance at Rs 6,106. Investors can buy only on a close above Rs 6,106 for targets of Rs 6,400-6,818 in the near term. Strong support will now be at Rs 5,728.”
Jigar S Patel, Senior Manager & Technical Research Analyst at Anand Rathi Shares and Stock Brokers, suggested buying Bajaj Finance near Rs 5,600-5,700 levels only for an upside target of Rs 6,300 with a stop loss placed at Rs 5,300.
The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. Bajaj Finance has an average target price of Rs 92, as per data publicly available with Trendlyne, suggesting an upside potential of 44.52 per cent. The stock’s one-year beta stood at 1.41, indicating high volatility on the counter.
Bajaj Finance’s 14-day relative strength index (RSI) came at 23.44. 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 40.19.
Apparently, in a rub-off effect, Bajaj Finserv also dropped today. The stock fell 1.49 per cent to hit a day low of Rs 1,391.60 over its previous close of Rs 1,412.65.
Bajaj Finserv’s 14-day relative strength index (RSI) came at 25.22. The company’s stock has a price-to-equity (P/E) ratio of 249.04.
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Meanwhile, Indian equity benchmarks plunged in afternoon deals, dragged by technology, banks and financials. BSE and NSE lost more than a per cent, each, today after recording a rebound in the previous session.
