- By Vaamanaa Sethi
- Mon, 25 Sep 2023 12:54 PM (IST)
- Source:JND
Bajaj Finance share price surged by 4% in early morning trade on Monday, September 25 on BSE, in a weak market. This happened after the company said its board of directors will meet next week to consider raising funds.
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Bajaj Finance stock opened at Rs 7,594 per share on Monday versus the previous close at Rs 7,472.50 per share on Friday, rose over by 4% in early trade to hit intraday high at Rs 7,780 per share on Monday so far.
"A meeting of the board of directors of Bajaj Finance will be held on Thursday, 5 October 2023 to consider the proposal for raising funds through any or all of various methods including by way of preferential issue, qualified institutions placement, subject to such regulatory and statutory approvals as may be required, including approval of the shareholders of the company," Bajaj Finance said in an exchange filing post market hours last Friday.
According to reports, Bajaj Finance stock has underperformed in Sensex benchmark this year, as it gained nearly 7% in the last one year against 15% in the same period in Sensex.
The stock hit a 52-week high at Rs 7,999.90 on BSE on July 5 this year and its 52-week low of ₹5,487.25 on BSE on March 20 this year.
Experts Take on Bajaj Finance Stock
Many experts and brokerage firms are positive about the Bajaj Finance stock for the long term.
"While we still do not have finer details on the game plan of Jio Financial, it has plans to initially foray into consumer and merchant lending. Some of the channel checks suggest that Jio Financial has already started consumer lending pilots in consumer durable/lifestyle stores owned by Reliance. This capital raise could then be a tacit acknowledgement that Bajaj Finance is readying its capital ammunition for how the competitive landscape is going to evolve over the next few years," Brokerage firm Motilal Oswal Financial Services, was quoted as saying by Livemint, adding that he stock can rise further after the company announced its plan for a capital raise.
Among the international brokerage firms, Jefferies has issued a buy recommendation for Bajaj Finance, setting a target price of ₹8,830, as reported by CNBC-TV18.
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"Assuming Bajaj Finance raises 10-15 percent of net worth, the issue size may be about Rs 8,000 crore. This would lead to the dilution of 2 percent whereas FY24 EPS and BVPS may rise 6 percent and 11 percent, respectively. RoE may see a slight fall to 22 percent," Jefferies was quoted as saying by CNBC-TV18.
