Bajaj Finance Shares Rally Over 5% Following Citi’s Positive Outlook

Bajaj Finance shares surged more than 5% on Thursday, buoyed by Citi’s reaffirmation of its “Buy” rating on the stock. The shares touched an intraday high of ₹7,306.05 on the NSE, reflecting a 5.34% increase from the previous close. The stock has gained nearly 7% over the last two trading sessions, aligning with positive momentum in the finance and non-banking financial company (NBFC) sectors. The sectoral index also registered a 2.01% rise during the day.

Citi has projected a price target of ₹8,150 for Bajaj Finance, suggesting a potential upside of 17.51% from the stock’s closing price on Wednesday. The brokerage expressed optimism about stable loan growth, supported by a slight improvement of 3-5 basis points in net interest margins (NIM).

According to Citi’s report, segments such as mortgage financing, sales financing, and emerging business verticals are expected to drive growth. However, the brokerage noted a marginal increase in credit costs, estimated to range between 2.2% and 2.5%.

Citi also highlighted the significance of updates regarding Bajaj Finance’s ongoing management transition in shaping its long-term trajectory.

In a related development, Bajaj Finserv Ltd, the parent company of Bajaj Finance, experienced a nearly 9% surge in its share price. This gain extended the stock’s positive run for the second consecutive session, further reinforcing investor confidence in the group.

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