MUMBAI: Brokerages raised target price on Bajaj Finance after the company's strong showing in earnings performance for the quarter ended March.Emkay Global raised target price by 1.3% to Rs 3,665 while maintaining a buy rating and Jefferies has raised target price by 16.1% to Rs 3,600, also retaining its buy recommendation.
Morgan Stanley has raised target price on Bajaj Finance by 13.5% to Rs 2,950 and maintained equal-weight rating.
Deutsche Bank has maintained hold rating on the stock and increased target price to Rs 2,700 from Rs 2,400.
Credit Suisse has an underperform view on the stock but raised target price to Rs 1,930 from Rs 1,660.
Brokerages have raised target price but ratings are mixed.Shares of Bajaj Finance surged 6.1% to end at Rs 3,301.20 on Friday, a day after it reported a 57% jump in consolidated profit for the March quarter to Rs 1,176 crore compared with Rs 748 crore profit in the same quarter last year.
Consolidated assets under management rose 41% to Rs 1.1lakh crore.In a tough environment for NBFCs, BAF continued to grow AUM by over 40%, grew revenues faster, and maintained good asset quality, said Morgan Stanley.
The firm has retained equal-weight citing steep valuation.Jefferies has increased earnings estimates by 8% for FY20 and FY21.Strong growth in new customers, expanding cross sell base, along with product and geographic expansion should drive strong, sustainable loan growth Solid earnings growth and returns should support premium valuations, said Jefferies.