(Reuters) – Shares of India’s Bajaj Finance rose 3.5% on Friday to extend their record-high rally, a day after it elevated veteran leader and managing director Rajeev Jain to the post of vice chairman, which analysts termed a “smooth succession.”
The non-banking financial company also announced present deputy MD Anup Kumar Saha will be replacing Rajeev Jain as MD.
“The move should allow Jain to stay involved in short- and mid-range planning at Bajaj Finance and investor engagements,” Jefferies said in a note.
Smooth succession, healthy growth and improving asset quality will aid valuations, the brokerage said, adding that Bajaj Finance remains a top pick.
Bajaj Finance has risen 31% so far this year, and is the top gainer on the Nifty 50 index among 22 stocks in the green. Nifty 50 is down 1.9%.
The stock has been hitting record highs since January after posting strong third-quarter numbers and on expectations of continuing growth momentum.
Analysts, on average, rate Bajaj Finance at “buy,” with the median price target at 8,896 rupees.
(Reporting by Sethuraman NR; Editing by Janane Venkatraman)
