Shares of non-banking financial firm Bajaj Finserv and unit Bajaj Finance Ltd climb 5.7 per cent and 6.7 per cent, respectively to all-time highs.

Kotak Institutional Equities has raised the price target for Bajaj Finserv to Rs 6,100 from Rs 5,900 to factor in the higher value of Bajaj Finance, but downgraded to “reduce” from “add”.

Bajaj Finserv had posted 41.27 per cent surge in consolidated Q1 profit at Rs 825.77 crore on Thursday. The company had posted a net profit of Rs 584.53 crore in the corresponding quarter last year.

Jefferies has raised the price target for Bajaj Finance to Rs 2,900 from Rs 2,400; it has kept “buy” rating. Bajaj Finance posted another strong quarter and its core fundamentals are intact, it says.

Bajaj Finance had on Thursday reported 81 per cent surge in June-quarter consolidated PAT at Rs 836 crore for the quarter ended June 2018 against Rs 461 crore in the same quarter year ago.

Valuations appear steep for Bajaj Finance, but this may sustain unless growth slows or asset quality slips, which is unlikely in near term, the brokerage says.

Both the stocks were among the top percentage gainers on Nifty 50 Index. Shares of Bajaj Finance had gained 43 per cent this year as of last close, while Bajaj Finserv had gone up 20.4 per cent.

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