Shares of Bajaj Finserv rose 3.4% from its previous close on March 6 as the company pushed ahead with plans to build a financial ecosystem for its clients.

The stock touched a high of Rs 1,401, 3.39% above its previous close of Rs 1,355.2. It was trading at around Rs 1,386 at 12:13 pm on the BSE on March 6, 2.33% above its last close.

A few days ago, the financial services company received approval from the market regulator to conduct a mutual fund business. The Securities and Exchange Board of India (Sebi) has issued a certificate of registration to Bajaj Finserv Mutual Fund (BFMF) and approved Bajaj Finserv Asset Management Ltd as the BFMF’s asset manager, it said in a bourse filing.

Positive sentiment around the stock has been building for over a month after a strong quarter. The company’s net profit rose 42% year-on-year to Rs 1,782 crore.

Analysts at IIFL have an “add” call in their October 2022 report with a price target of Rs 1,720.

Sharekhan, who has a “buy” rating on the stock, noted that the company’s profitability and product mix are improving.