Bajaj Finance share price surged over 5 percent in Thursday's trade after analysts at the brokerage Citi reiterated its 'Buy' rating on the stock.
The stock climbed to an intraday high of Rs 7,306.05 on the NSE, marking a 5.34 percent gain from its previous close. Over the past two sessions, Bajaj Finance shares have gained nearly 7 percent. The broader finance and NBFC sector also saw a positive movement, with the sectoral index rising 2.01 percent during the day.
Citi has set a price target of Rs 8,150 for Bajaj Finance, indicating a potential upside of 17.51 percent from Wednesday's closing price. The brokerage highlighted expectations of loan growth stability, supported by a 3-5 basis point (bps) positive bias in net interest margins (NIM).
"Key support is coming from segments like mortgage financing, sales financing, and new business ventures," Citi noted in its report. It also flagged a marginal rise in credit costs, estimated between 2.2 to 2.5 percent.
Citi further emphasised that updates on the company's ongoing management transition would be crucial in assessing its long-term prospects.
Twin Bajaj Finserv Ltd shares also jumped nearlyh 9 percent on rub-off effect. The counter has been gaining for the last two days.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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