Thus far in the calendar year 2019, the stock has outperformed the market by surging 58 per cent, as compared to a 12 per cent rise in the S&P BSE Sensex.
Analysts at JP Morgan have ‘overweight’ rating on Bajaj Finance with March 2020 target price of Rs 4,500 per share.
The brokerage firm believes that Bajaj Finance’s consumer business can deliver sector-leading loan and earnings growth over the next three years driven by new customer acquisitions and distribution footprint scale-up.
"A strong run-up in the stock and elevated valuations do pose a risk, but underlying fundamentals support those rich valuations," it added.
At 10:35 am, the stock was up 2 per cent at Rs 4,156, as against a 0.49 per cent rise in the Sensex. A combined 901,657 shares have changed hands on the counter on the BSE and NSE so far.