Bajaj Finance is the biggest Nifty gainer on Tuesday with gains of 7 percent in trade. The reason for the surge in its stock price is a strong first quarter business performance.

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The new loans growth is strong at 34 percent year on year, while the assets under management growth is the best in 14 quarters. Street estimated 6 to 7 percent quarter on quarter assets under management growth, but company delivered 9 percent quarter on quarter growth and 32 percent year on year. CLSA says this is extraordinary for an NBFC of its size.

The customer base rose 21 percent year on year and 5.6 percent quarter on quarter. The average ticket is also 9 percent higher year on year at Rs 37,003.

The stock of Bajaj Finance closed the trading session on July 4 at Rs 7,860. Since the start of 2023, the stock has rallied 20 percent till date.

CLSA has upgraded the stock to buy from outperform and target price is raised to Rs 9,000 from Rs 6,600. JP Morgan also has a target price of Rs 9,000 with an overweight rating. morgan stanley raised its target price to Rs 9,250 with overweight rating and says it is a preferred play in the NBFC rally.