Bajaj Finance Limited is one of the leading non-banking financial companies (NBFC) in India. It is engaged in lending across retail, SME, and commercial customers and accepts public and corporate deposits.
Shares of Bajaj Finance surged nearly 5 percent on NSE in intraday trade on June 2 and looked on course to extend gains into the fifth consecutive session.
The stock traded as the most active stock in terms of value on NSE. By 12:25 hours, shares of worth Rs 2,476 crore of Bajaj Finance had changed hands on NSE.
Bajaj Finance Limited is one of the leading non-banking financial companies (NBFC) in India. It is engaged in lending across retail, SME, and commercial customers and accepts public and corporate deposits.
The company's Q4 FY20 AUM grew 27 percent YoY to Rs 147,153 crore. Net interest income rose 38.4 percent YoY to Rs 4,679 crore in Q4 FY20. However, PAT fell 19.4 percent YoY due to high provisioning (up 377.4 percent YoY).
Brokerage firm Geojit has a buy recommendation on the stock with a target price of Rs 2,570.
"Recording strong topline performance in this quarter we believe that the heavy provisioning will give enough buffer in this challenging environment amidst COVID-19, eventually allowing the company to bounce back, we upgrade our rating to buy with a revised target price of Rs 2,570 based on 3.5 times FY22E BVPS," Geojit said.
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