Bajaj Finserv rose as high as 3.4 percent on March 6 from its previous close, with the company pushing ahead with plans to build a financial ecosystem for its customers.
The stock touched a high of Rs 1,401, which was 3.39 per cent higher than the previous close of Rs 1,355.2. It was trading at around Rs 1,386, or 2.33 percent higher than its previous close, at 12.13 noon on BSE on March 6.
Also read: Why did Bajaj Finserv top the monthly Maximum Optimism charts?
A few days ago, the financial services company got the market regulator’s approval to start a mutual-fund business. The Securities and Exchange Board of India (Sebi) granted a certificate of registration to Bajaj Finserv Mutual Fund (BFMF) and also granted approval for Bajaj Finserv Asset Management Limited to act as an asset management company for BFMF, stated a filing at the exchange.
Positive sentiment around the stock has been building for over a month now, following a strong quarterly performance. The company’s net profit surged 42 percent YoY to Rs 1,782 crore.
In Moneycontrol’s Analyst Call Tracker for February, the stock registered maximum upgrades over January. That is the percentage increase of ‘buy’ calls on the stock by market analysts was the highest. Buy calls had gone up to 6 in February from 5 in January and ‘sell’ calls had fallen to 1 from 2. In all, the stock saw an 11.1 per cent upgrade, month-on-month.
Analysts sound confident about the company’s various business verticals. IIFL’s analysts, in their October 2022 report, in which they had given an ‘add’ call with a price target of Rs 1,720 for the stock, noted that the company’s insurance business was “firing on all cylinders” and that its “investments in finance (Bajaj Market) and health (Finserv Health) would create extensions that would be value accretive over the next decade”.
Sharekhan, which has a ‘buy’ call on the stock, pointed to the company’s improving profitability and product mix. Analysts said that in the general insurance business, the company is focusing on profitability and generating sustainable RoE; while its life-insurance business is growing stronger on its existing product mix and new launches. This improving outlook for the insurance business, along with strong growth in the lending business, is what the analysts believed will act as a “positive trigger for strong consolidated earnings going forward”.