Shares of the Bajaj Twins, Bajaj Finance and Bajaj Finserv surged by up to 2.7% on September 18. This boost came in the wake of the strong debut of Bajaj Housing Finance, which more than doubled investors' wealth upon listing. The positive momentum in Bajaj Twins also reflects an increased interest in share market investment opportunities.
Morgan Stanley's outlook on Bajaj Finance
Morgan Stanley's favourable review contributed to the rally, maintaining an 'overweight' rating on Bajaj Finance. The brokerage sees a 19% upside from current levels, setting a target price of ₹9,000. Their optimism is based on the attractive valuations relative to return on equity (RoE) and earnings per share (EPS) growth. Morgan Stanley's note emphasised that stock performance will help gauge the level of holding company discount.
Strong performance and future expectations
In the past month, both Bajaj Finance and Bajaj Finserv have seen significant buying interest, rising 14% each and reaching fresh 52-week highs. Bajaj Finance peaked at ₹8,190, while Bajaj Finserv touched ₹1,920. This performance highlights the growing interest in share market investment within this sector.
Emkay Global's positive assessment of Bajaj Finserv
Earlier, Emkay Global initiated coverage on Bajaj Finserv with a 'buy' rating and a target price of ₹2,150, indicating a potential upside of 14%. Emkay Global's positive stance is supported by three factors: the strong performance of established businesses like Bajaj Finance and Bajaj Allianz, the comprehensive product suite including new ventures like Bajaj Finserv AMC and Bajaj Securities, and long-term growth potential from Bajaj Finserv Health. The analysts project Bajaj Finserv's consolidated PAT to grow at 24% CAGR over FY24-27, reaching ₹15,400 crore.
Conclusion
The rise in Bajaj Twins' shares reflects investor confidence following the impressive market debut of Bajaj Housing Finance. With positive ratings and target price upgrades from key analysts, the future outlook for both Bajaj Finance and Bajaj Finserv remains optimistic. Investors looking to buy shares online in this sector may find compelling opportunities as the market continues to respond favourably.
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