Shares of Bajaj Finance Ltd. surged over 7% on Tuesday after its loan book grew 34% in the first quarter of fiscal 2024.
The non-banking financial company's new loans stood at 99.4 lakh for the quarter, according to an exchange filing. Its deposit book saw a 46% jump to Rs 50,000 crore, compared to the previous year.
Assets under management grew by 32% year-on-year to Rs 27,000 crore, and customer franchise grew to 7.3 crores as of June 30, registering the highest ever quarterly increase at 6%.
Jefferies continues to maintain a 'buy' rating on the stock, with a target price of Rs 8,310, suggesting a 16% upside.
The company's foray into new loan segment and new client-base will continue to aid growth, the brokerage said.
Shares of Bajaj Finance rose 7.31%, compared to a 0.13% rise in the NSE Nifty 50 as of 10:46 a.m. The stock rose 7.98% intraday.
Total traded volume so far in the day stood at 12.3 times its 30-day average. The relative strength index was at 78.93, implying that the stock may be overbought.
Of the 30 analysts tracking the company, 20 maintain a 'buy' rating, four recommend a ‘hold', and six suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 5.1%.
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