Bajaj Finance shares hit record high after Rajeev Jain gets promoted as vice chairman
Rajeev Jain will overseeing Bajaj Finance and supervise some of new initiatives of the group in healthcare and support transitions in the insurance companies.
Bajaj Finance's shares rose to a record high on March 21 after Rajeev Jain, the company's managing director got appointed as Vice Chairman.
At 11:15 am, Bajaj Finance shares were trading at ₹8,893, which is a rise of 2.46 per cent or ₹213.20. Its all-time high was ₹9,070.
Jain would be overseeing Bajaj Finance in his new role, as well as supervise some of the newer initiatives of the group in healthcare and support transitions in the group’s insurance companies, according to a Moneycontrol report.
The promoter of Bajaj Finance is Bajaj Finserv, which also holds around a 54 percent stake in the ₹3.25 lakh crore lending company.
As a result of Jain's appointment, brokerages rushed to hike their target prices on the NBFC, according to the report which added that CLSA issued the highest price target of ₹11,000 per share of Bajaj Finance, indicating an upside of 27 percent from the previous session's closing price.
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For instance, BofA Securities reiterated its 'buy' tag, hiking its target price to ₹10,500 per share and addressed the succession plan as “well executed,” according to the report.
Meanwhile, Citi Research and Morgan Stanley bumped up their price targets to ₹10,200 and ₹10,500, respectively, and maintained optimistic 'buy' calls.
“Leadership continuity and strategic clarity lends unwavering credence to seamless execution and mitigates concerns around management transition risk,” Citi wrote in its note, as per the report.
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Meanwhile, Morgan Stanley stated that Rajeev Jain's continuity at Bajaj Finance will also improve investor confidence and sentiment, along with eliminating long-term uncertainty, according to the report.
