Bajaj Finance shares at fresh all-time high level; is more steam left?

Shares of Bajaj Finance Ltd continued to rise for the second straight session in Thursday's trade, scaling their new record high level. The stock rose 2.87 per cent hit a lifetime high of Rs 8,736. It was last seen trading 2.31 per cent up at Rs 8,688.35. At this price, it has gained 25.25 per cent on a year-to-date (YTD) basis.

Shares of most non-banking financial companies picked up momentum today after the Reserve Bank of India (RBI) rolled back the higher risk weight assigned for bank loans to NBFCs, bringing in relief for the entire sector. The central bank also lowered risk weight requirements for loans extended by banks to microfinance firms.

A few analysts largely remained divided on the counter. Technically, support could be seen at Rs 8,590.

"Investors should hold on to Bajaj Finance shares as the counter can trade above Rs 9,000 level in the near term. One can buy and hold as it can hit further highs. The stock has witnessed a strong breakout after a long time," market expert Raghvendra Singh told Business Today.

"Bajaj Finance is bullish but also overbought on daily charts with next resistance at Rs 8,877. Investors should be booking profits at current levels as a daily close below the support of Rs 8,590 could lead to a downward target of Rs 8,127 in the near term," said Sebi-registered research analyst AR Ramachandran.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 72.46. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 32.60 against a price-to-book (P/B) value of 6.64. Earnings per share (EPS) stood at 260.47 with a return on equity (RoE) of 20.35.

As of December 2024, promoters held a 54.70 per cent stake in the company.