Bajaj Finance stock jumps five percent after strong quarterly update

Bajaj Finance shares saw a sharp increase on Monday following the release of the non-banking financial company's business update for the second quarter of the 2027 financial year. The company reported a 26.5 percent year-on-year growth in its assets under management, taking the total to nearly Rs 5.85 lakh crore.

Market Reaction

Financial firm Jefferies kept its Buy rating and its target price of Rs 1,280 for the stock. This target points to a 35 percent upside for investors. Jefferies also confirmed Bajaj Finance as a top pick, pointing to the strong growth in assets under management as the main reason. The company also saw steady customer additions and good loan growth over the July-September quarter.

Context

Assets under management, commonly called AUM, measure the total market value of investments that a financial company manages for its clients. Strong growth in this figure usually shows that a lender is successfully expanding its business and attracting more borrowers.