Bajaj Finance shares surge nearly 8% to hit 52-week high; here's why

Shares of Bajaj Finance rallied 7.9 percent on Tuesday, July 04, to hit a 52-week high after the company said that it recorded the highest-ever quarterly increase in its assets under management (AUM) of approximately ₹22,700 crore in Q1FY24.

In Q1FY24, the AUM experienced a 32 percent growth, reaching around ₹270,050 crores. This is a notable increase from ₹204,018 crore recorded in Q1FY23.

Indian benchmark indices Nifty and Sensex reached new record highs for the fourth consecutive session on Tuesday, driven by continuous FPI inflows and positive global trends, marking six consecutive sessions of gains.

During Tuesday’s trade, the stock opened at a price of Rs. 7,650 per share against the previous close of Rs. 7,333 and grew further during the early trading session to touch a 52-week high of Rs. 7,918.

It was trading at ₹7,855.25, up by 7.1 percent, at 11:30 a.m. on the NSE. Meanwhile, the shares of Bajaj Finserv were trading at a price of Rs. 1,619.25 apiece, marking a gain of 5.14 percent.

Bajaj Finance stock touched a 52-week low of Rs. 5,485.70 on March 20, 2023, indicating that at the current price, the stock is trading over 43 percent above that level.

The stock has grown over 11 percent in the last one month. Moreover, in the past six months, it has increased by nearly 20 percent. Furthermore, in the last five years, it has gained almost 235 percent.

As of June 30, 2023, the customer franchise stood at 72.98 million, indicating growth from 60.30 million as of June 30, 2022. During Q1FY24, the company achieved its highest-ever quarterly increase in customer franchise, adding 3.84 million new customers.

Bajaj Finance witnessed a 34 percent growth in its loan book, reaching 9.9 million in the April-June quarter of the current fiscal year. This marks a significant increase compared to 7.2 million in the corresponding period of the previous year.

At the end of Q1, the NBFC had a consolidated net liquidity surplus of approximately ₹12,700 crore. Furthermore, in Q1FY24, its deposits book amounted to around ₹49,900 crores, reflecting a growth of 46 percent compared to ₹34,102 crores in the corresponding period last year.

Bajaj Finance's loan growth exceeded expectations, leading global brokerage CLSA to upgrade its rating to 'Buy' and raise the target price to ₹9,000 per share.

Bajaj Finances consumer lending products include consumer electronics, furniture, digital products, e-commerce purchases and daily spends financing.

According to a MintGenie poll, 28 analysts on average have a ‘BUY’ call on the stock.