Bajaj Finance, Bajaj Finserv shares jump up to 8% today; here’s why

Shares of Bajaj Finance Ltd soared 7.93 per cent to hit a 52-week high of Rs 7,916.70 in early trade on Tuesday against a previous close of Rs 7,335.35. The stock has gained more than 12 per cent in the past five sessions and around 20 per cent on a year-to-date (YTD) basis.

The non-banking financial company (NBFC) said its assets under management (AUM) grew 32 per cent to Rs 2,70,050 crore as of June 30 compared with Rs 2,04,018 crore as of June 30, 2022. The NBFC recorded highest ever quarterly increase in its AUM of approximately Rs 22,700 crore in Q1 FY24.

Deposits book stood at approximately Rs 49,900 crore at June-end against Rs 34,102 crore in the year-ago period, up 46 per cent. Customer franchise as of June 30 stood at 72.98 million compared with 60.30 million as of 30 June 2022. Bajaj Finance recorded highest ever quarterly increase in its customer franchise of 3.84 million in Q1 FY24.

“Bajaj Finance delivered robust quarterly numbers for Q1 FY24 with strong loan growth and healthy new customer acquisition. AUM has also shown significant growth in the said quarter. On technical setup, the stock price is in uptrend and may continue its rally to touch the levels of Rs 8,000 in near term,” said Ravi Singh, Vice-President and Head of Research at Share India.

“The stock is very bullish but also overbought on the daily charts with next resistance at Rs 8,074. Investors should book profits at current levels or hold till daily support of Rs 7,600 is not broken on a closing basis,” said AR Ramachandran from Tips2trades.

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Around 2.18 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 32,000 shares. Turnover on the counter came at Rs 170.98 crore, commanding a market capitalisation (m-cap) of Rs 4,76,312.96 crore. There were 1,91,202 buy orders today against sell orders of 40,252 shares.

The counter’s 14-day relative strength index (RSI) came at 78.30. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-earnings (P/E) ratio of 43.16. It has a price-to-book (P/B) value of 8.62.

The scrip has a one-year beta of 1.38, indicating high volatility.

Bajaj Finserv also gained today in what could be seen as a positive rub-off effect. The stock jumped 5.99 per cent to hit a day high of Rs 1,632.95.

Its 14-day RSI came at 78.30. The stock has a P/E ratio of 43.16 and P/B value of 8.62. The counter has a one-year beta of 1.42, suggesting high volatility.

Both the Bajaj stocks (Finance and Finserv) went ex-dividend on June 30.

Meanwhile, Indian equity benchmarks extended their gains record run today by scaling fresh all-time high levels. The domestic indices were up led by gains in financials, technology, banks and consumer durables.

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