Bajaj Finance shares rose as much as 1.24 per cent to hit a 52-week high of Rs 4779.20 apiece on NSE in Tuesday’s trade for at least second consecutive day. The company has surpassed its previous 52-week high level of Rs 4,734 touched in yesterday’s session. Around 1.30 PM, Bajaj Finance shares were trading 0.89 per cent up at Rs 4,759 apiece. Last month, the company reported its highest ever consolidated net profit at Rs 1,614 crore for the quarter ended December 31.
Post healthy December results, brokerage company Anand Rathi Shares and Stocks Brokers has revised its rating to hold from buy with a target price of Rs 4,910. Previously it had set a target price of Rs 4,818. “Management expects AUM growth to be led by rural revival, backed by decent monsoons and recent government reforms toward consumption and liquidity. It is expected to pass on gains arising from the corporate tax cuts to end-borrowers in order to be more competitive in certain segments, which will further aid growth,” Anand Rathi Shares and Stocks Brokers said in result update.
Bajaj Finance reported a 52 per cent on-year rise in consolidated net profit at Rs 1,614 crore for the quarter ended December 31 compared with Rs 1,060 crore in the same quarter last year. The company said it added 182 new locations in third quarter of the financial year 2019-20, taking its total geographic presence to 2,179 locations in India as of December 31.
“Given its parentage and AAA-credit rating, BFL has comfortably sailed through the recent liquidity crisis and maintained strong growth rates. We continue to remain positive on the company over medium to longer term perspective and assign a HOLD rating on the stock with a revised target price of Rs.4,910 per share,” Anand Rathi Shares and Stocks Brokers said.