Bajaj Finance share price jumps over 7% on robust Q1 business update; brokerages raise target
₹7,916.70 apiece on the BSE after the company reported strong business update for the quarter ended June 2023, with robust volume and loan growth and healthy new customer acquisition. The NBFC’s loan book grew 34% to 9.9 MM in the April-June quarter of the current fiscal from 7.2 MM in the corresponding period last year. The company’s customer franchise jumped to 72.98 MM as of June 30, 2023, compared to 60.30 MM in the year-ago period.
Bajaj Finance recorded its highest ever quarterly increase in its customer franchise of 3.84 MM in Q1FY24. Read here: Bajaj Finance Q1FY24 Update: Loan book up 34%, AUM up 32% to ₹2.7 lakh crore; check details Assets under management (AUM) grew by 32% to approximately ₹270,050 crore in Q1FY24 from ₹204,018 crore in Q1FY23. The company recorded the highest ever quarterly increase in its AUM of approximately ₹22,700 crore in Q1FY24.
The company’s consolidated net liquidity surplus stood at approximately ₹12,700 crore as of June 30, 2023. In addition, deposit book rose to ₹49,900 crore from ₹34,102 crore in the year-ago period, registering an annual growth of 46%. Also Read: IDFC share price rises 6%, IDFC First Bank share price falls 6% after board approves merger Global brokerage CLSA said Bajaj Finance’s loan growth beat estimates and its valuation offered further upside.
CLSA upgraded Bajaj Finance to ‘Buy’ from ‘Outperform’, and raised target price to ₹9,000 per share from ₹6,000 earlier. “Bajaj Finance reported very strong pre-quarterly numbers for 1QFY24. While we expected 6%-7% QoQ AUM growth, the company delivered 9% QoQ growth, taking the YoY tally to 32%.
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