Bajaj Finance sets a 52-week high and rises 4%: Three causes driving the Rally
Bajaj Finance’s share price rocketed to a new 52-week high on Wednesday, March 21, jumping more than 4% to Rs 9,089 per share on the NSE. The company’s share price has risen in response to the important announcement of a leadership transition and other suitable events. The rally might be attributed to the shift of leadership at Bajaj Finance. Bajaj Finance is facing a significant leadership shift, with Anup Kumar Saha taking over as Managing Director on April 1, 2024. Meanwhile, Rajeev Jain, who played an essential part in the company’s success, will become Vice Chairman.
Brokerages remain optimistic on Bajaj Finance: The biggest brokerages remain bullish on Bajaj Finance, maintaining their positive outlook and upping their target prices.
- Citi: Citi has retained its Buy rating on Bajaj Finance, raising the target price to Rs 10,200.
- BofA: Bank of America (BofA) maintained its Buy rating and set a higher target of Rs 10,500 per share.
- CLSA adopted an even more positive stance, keeping an Outperform rating and raising its target price to Rs 11,000.
- Jefferies continues to suggest a Buy, with a relatively cautious target price of Rs 9,270 per share.
During this week, Bajaj Finserv, the parent company of Bajaj Finance, announced a significant purchase, purchasing Allianz SE’s 26% interest in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance. This will give Bajaj Group entire control over these insurance firms. The transaction, subject to regulatory clearance, concludes a 24-year association with Allianz.
Bajaj Finance Stock Efficiency:
Bajaj Finance’s share price has risen by 3% in the previous five trading sessions and 6% in the last month. Looking at a broader period, Bajaj Finance’s share price has risen by 17% in the previous six months and approximately 33% year on year. On a year-to-date basis, the stock is up about 26%. The company’s market capitalization is Rs 5.47 lakh crore, and its share price reached a new 52-week high of Rs 9,089 today. The 52-week low is at Rs 6,375.70.
