Bajaj Finance doubles wealth in a year; hits new 52-week high

Bajaj Finance is assured for further upside and may touch Rs 7000 in this series, say experts.

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Bajaj Finance Ltd. has more than doubled in the last year compared to a 55 per cent rally in the Nifty50. It is back on the buyer’s radar. Experts say if this momentum continues, the stock can hit Rs 7,000-8,000 in the medium term.

Excluding the price action on June 10, the stock underwent consolidation in the first three trading days of the week. It is after the non-bank lender said it could see higher non-performing assets in the first six months of FY22 due to lockdowns. Now with the daily cases slipping below the 100,000-mark, and vaccinations getting a pace, the impact of COVID-19 on the economy could be limited. According to the Department of Economic Affairs (DEA), the economic impact of the second wave of COVID-19 is likely to be restricted to the first quarter.

Bajaj Finance in the S&P BSE finance index hit a fresh 52-week high on June 10. Bajaj Finance closed with gains of 7.2 per cent on the BSE at Rs 6,087 after hitting a 52-week high of Rs 6115.85.

“The financial impact of COVID 2.0 has been much milder than the first wave, with BAF remaining open for business across all categories”, said Morgan Stanley, an American multinational investment bank, in a note on June 10.

Mehul Kothari, AVP, Technical Research at AnandRathi commented, “as of now, it is poised for further more upside. We won’t be surprised if we see 7,000 in this series.”

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