Bajaj Finance shares fall after Bernstein downgrades stock

A subsidiary of Bajaj Finserv, Bajaj Finance Limited plunged around nine per cent on Friday after New York-based research firm-Bernstein downgraded its stock.

In a research report, global investment advisory firm-Bernstein downgraded the stock of Bajaj Finance to ‘underperform’ from ‘outperform’ and cut its target price by 64 per cent to Rs 1,740 per share. The research firm is of the view that unsecured consumer finance business models would become challenging in the current pandemic environment.

It is being said that this is one of the biggest cuts on an Indian blue-chip stock in the recent times.

Bajaj Finance Ltd is an Indian non-banking financial company (NBFC), dealing in consumer finance, small and medium-sized (SME) enterprises, commercial lending as well as wealth management.

At the time of market closing on Friday, the stock of Bajaj Finance Ltd was trading at Rs 2,546.45, down by 8.87 per cent against its previous close of Rs 2,794.35. Its 52-week high is Rs 4,923.20 while, its 52-week low is Rs 2,105.00 on BSE.