Bajaj Finance entered the elite club of companies with a market capitalization (market capitalization) of Rs 3 billion after the company’s share price reached a new high of Rs 4,992.55, up 2 per cent in Tuesday’s otherwise weak market.
The share of the non-bank financial company (NBFC) exceeded its previous high of 4,957.50 rupees, affected on 27 November 2020.
At 11:42 a.m., Bajaj Finance’s market capitalization stood at 3.01 trillion rupees, according to the exchange data. By comparison, the S&P BSE Sensex was down 0.47 percent at 46,035 points. Currently, Bajaj Finance, is at the ninth position in terms of overall market capacity ranking and companies having a market capacity of more than Rs 3 trillion.
In the past three months, the stock has gained 42%, compared to 18% percent of S&P BSE Sensex. For the July-September quarter (Q2FY21), Bajaj Finance reported in-line performance with elevated Covid stocks, lower opex, which enabled higher-than-expected operating profit and stagnant status kept asset quality stable. However, analysts ’outlook on the company’s long-term prospects remains positive.
“Low Finance has been driving through the headwinds and has emerged stronger with a thinner operating model and robust growth leadership. The new banking license review by the Reserve Bank of India (RBI) has recommended that large NBFCs with> 50,000 crore assets with 10 years of existence can apply for a banking license, ”ICICI Securities analysts said in a stock update.
Also a growth lead of around 25 per cent for FY22E and an opportunity to apply for a banking license resulted in renewed interest from investors in the shares, the brokerage firm said with a ‘buy’ rating on the stock with a target price of Rs 5,900.
“We upgraded the stock to BUY subsequent quarterly earnings, but the multiple expansion was much higher. We believe premium multiples are coming back for Baja Finance,” it said.