Bajaj Finance Record High Levels, Investors Speculative About Consistency:-
Bajaj Finance crossed Rs 3 lakh crore in the market capitalisation for the first time, as the stock of the country's largest none banking finance company (NBFC) hit a record high. The stock scaled a record high of Rs 5152 on Tuesday and it's market- cap hit the Rs 3.09 lakh crore mark.
The Sensex has tumbled more than 50% in March it hit a 52 week low of Rs 1783 on May 27, the stock has nearly multiplied up to 3 times. The stock has logged gains in 16 if last 19 calendar years since 2000 and has doubled investor's wealth for six years.
Bajaj is engaged in several activities like lending and allied activities, fixed deposits, medium-sized enterprises etc.
On December 1, ICICI direct came out with a buy rating on the stock and raised the price target to Rs 5900 from Rs 3850.
ICICI direct analysts said, "Bajaj Finance has sailed through the headwinds a emerged stronger with a leaner operating model and robust growth guidance."
Large NBFC's with more than Rs 50000 crore assets can with at least 10 years existence can apply for a banking license.
The brokerage said," Also the company's management comment to consider the bodes well for a long term view on the stock. The NBFC's 25% growth guidance for FY22E and the opportunity to apply for banking license have resulted in renewed investor on the stock."
Mahantesh Sabarad, Head of Retail Reserach at SBI capital market said be doesn't have a rating on the stock at this time.
He said, " The stock valuations appear stretched as Bajaj Finance doesn't have a directly comparable peer that can match its performance, which makes it very attractive for investors to hold."
He further added, "With strong flows from FIIs there are very limited stocks where the money is getting in and Bajaj Finance and been one of them."