Momentumisers: Here’s why Bajaj Finance is in focus
Bajaj Finance underperformed Nifty last week as well as last month. So on a weekly basis, the stock is down 7 percent compared to Nifty being down about 1.4 percent. On a month-on-month basis, the stock is down about 9.4 percent compared to the 4.3 percent decline that is seen in Nifty.
The stock price is at Rs 6,847 per share which is below the 20-day moving average (DMA), 50 DMA as well as 100 DMA.
CLSA has initiated coverage on Bajaj Finance. They have a sell recommendation with a target price of Rs 6,000 per share. The firm said that lower customer acquisition and lower stickiness will impact; it is no more a 35 percent loan growth story. So CLSA believes that Bajaj Finance will undershoot investors’ expectations over the medium-term.
Watch the accompanying video of CNBC-TV18’s Abhishek Kothari for more details.
