Shares of Bajaj Finance soared as much as 9% on the back of strong Q1 results reported by the company. Bajaj Finance shares zoomed 8.88% to an intraday high of Rs 2,744.95 on BSE this afternoon.
Shares of Bajaj Finance soared as much as 9% on the back of strong Q1 results reported by the company. Bajaj Finance shares zoomed 8.88% to an intraday high of Rs 2,744.95 on BSE this afternoon. The rally in the share prices comes after the firm reported a 83% increase in its standalone net profit for the June quarter to Rs 833.7 crore, buoyed by a boosted net interest income. The non-banking finance company had reported earnings of Rs 456.40 crore in the corresponding quarter last year.
For the quarter ended June-18, the firm has reported a strong net interest income of Rs 2,578 crore, around 46% higher than in the same quarter a year ago. The company’s total income for the reporting quarter rose 34% on-year to Rs 3,796 crore.
Taking stock of the results reported in the quarter, global research firm Morgan Stanley said that Ind AS adoption in the latest quarter has affected headline numbers, but the underlying numbers remain strong. The firm has a target price of Rs 2,500 on the shares, with an outperform rating.
Deutsche Bank noted that there has been a strong AUM growth in the firm. Well diversified growth in the firm is lowering the concentration risk in the company, said the report. Deutsche Bank has a target price of Rs 1,950 on the shares, with an equal-weight rating. Bajaj Finance’s assets under management (AUM), as on June 30, came in 25% higher than at the end of the June quarter last year, at Rs 86,042 crore.