Bajaj Finance share price jumped 4% post strong Q1 update

The Blue Chip stock, Bajaj Finance, has fallen nearly 20% in 2022. The Q4FY22 numbers were also exceptional, but the stock has declined despite the good numbers. Now the company has released Q1 data, and brokerages have updated the share target price. Bajaj Finance stock jumped more than 4% post Q1 numbers update. Let us look at the numbers.

Bajaj Finance Q1 Update

• Bajaj Finance has recorded the highest ever quarterly increase in its customer numbers in Q1FY23 - the number stood at 2.7 million. The new loans booked in the first quarter stood at 7.4 million, compared to 4.6 million last year.
• The Asset Under Management (AUM) reported by the company as of June 30, June 2022 is Rs 2.04 lakh crore compared to Rs 1.56 lakh crore as of June 2021 - an impressive growth of 31% in the AUM.
• The Capital Adequacy Ratio (CRAR) stood at 26.2% at the end of the first quarter.
• The company's deposit book stood at Rs 34,100 crore against Rs 27,972 crore, posting an on-year growth of 22%.
• Bajaj Finance invested Rs 2,500 crore in equity shares of Bajaj Housing Finance Ltd., a wholly-owned subsidiary of the company.

Analysts View on Bajaj Finance Stock

Morgan Stanley: The international brokerage firm has kept an OVERWEIGHT rating on the stock with a target price of Rs 8,000 per share, an upside of 38% from the current levels.

Bernstein: The research firm has maintained an OUTPERFORM rating on the stock with a target of Rs 9,440 per share. The target is due to the healthy performance driven by strong balance sheet growth. Its core AUM grew 28% YoY and 6% QoQ. The report said that digital transformation and asset quality are the keys to monitoring.

CLSA: Brokerage house has kept a SELL rating on the stock and cut the target to Rs 5,000 from Rs 6,000 per share. As per the firm, the growth has slowed from pre-covid levels. The Q1 is a seasonally strong quarter for the company, and it used to grow 10%+ QoQ.