Shares of Bajaj Finance surged 2.31% to ₹8,879.90 on Friday, emerging as the top gainer on the Nifty 50. The rally follows the company’s leadership transition announcement, which has reinforced investor confidence.
What’s driving the rally?
Bajaj Finance’s board has appointed Rajeev Jain as Vice Chairman in the capacity of an Executive Director for a three-year term, effective April 1, 2025. Additionally, Anup Kumar Saha, currently the Deputy Managing Director, has been re-designated as Managing Director until March 31, 2028. These appointments are subject to shareholder approval.
Jain, who joined Bajaj Finance in 2007 and became Managing Director in 2015, has been instrumental in the company’s transformation from an auto financier to a diversified financial powerhouse. His leadership has driven expansion across loans, payments, and investments, leveraging digital innovation to solidify Bajaj Finance’s position as a market leader.
Brokerages bullish on Bajaj Finance
Following the announcement, multiple brokerages reaffirmed their bullish stance on the stock:
- Citi: Maintains Buy, raises target price to ₹10,200, citing strategic clarity and smooth leadership transition.
- Morgan Stanley: Overweight rating, target ₹10,500, stating Jain’s continued involvement eliminates investor concerns.
- CLSA: Upgrades target price to ₹11,000, forecasting 26% PAT CAGR over FY25–27, with AUM growth exceeding 25%.
- Jefferies: Maintains Buy, target ₹9,270, emphasizing smooth succession planning and improving asset quality.
Stock performance as of 10:10 AM:
- Current Price: ₹8,879.90 (+2.31%)
- Open: ₹9,039.95
- High: ₹9,089.00
- Low: ₹8,877.35
- Previous Close: ₹8,679.65
- 52-Week High/Low: ₹9,089.00 / ₹6,375.70
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should conduct their own research before making financial decisions.