The share price of Bajaj Finance soared to a new 52-week high on today, March 21, surging over 4% to touch Rs 9,089 apiece on the NSE. This surge in the share price of the company amid the key announcement of the leadership change and positive developments surrounding the company.
Let’s take a look at what is fueling this rally- 1. Bajaj Finance Leadership transition
Bajaj Finance is undergoing a key leadership change, with Anup Kumar Saha set to take over as Managing Director from April 1, 2024.
Meanwhile, Rajeev Jain, who played a key role in the company’s growth, will transition to Vice Chairman.
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The leading brokerages remain optimistic about Bajaj Finance, maintaining their positive stance on the stock and raising their target prices.
Citi: Citi has reiterated its Buy rating on Bajaj Finance, increasing its target price to Rs 10,200.
BofA: Bank of America (BofA) also maintained a Buy rating, setting a higher target of Rs 10,500 per share.
CLSA: CLSA took an even more optimistic view, maintaining an Outperform rating and revising its target price upwards to Rs 11,000.
Jefferies: Jefferies continues to recommend a Buy, setting a slightly conservative target of Rs 9,270 per share.
3. Bajaj Group’s insurance bet
Earlier this week, Bajaj Finserv, the parent company of Bajaj Finance, announced a major acquisition, buying out Allianz SE’s 26% stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance. This will give Bajaj Group complete ownership of these insurance businesses. The deal, subject to regulatory approvals, marks the end of a 24-year partnership with Allianz.
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The share price of Bajaj Finance has surged by 3% over the last five trading sessions and gained 6% in the past month.
Looking at a longer time frame, Bajaj Finance’s share price has increased by 17% over the past six months and nearly 33% on a yearly basis.
On a year-to-date (YTD) basis, the stock continues its upward momentum, rising nearly 26% as of today.
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