Bajaj Finance entered the elite club of companies with a market capitalization (market cap) of Rs.3 trillion after the company’s share price hit a new high of Rs 4,992.55, a 2 percent increase in the otherwise weak market on Tuesday corresponds.
The shares of the Non-Bank Financial Firm (NBFC) surpassed their high of Rs 4,957.50 on November 27, 2020.
At 11:42 am, Bajaj Finance’s market capitalization was 3.01 trillion rupees, according to stock market data. In comparison, the S&P BSE Sensex fell 0.47 percent to 46,035 points. Currently, Bajaj Finance ranks ninth in terms of overall market capitalization ranking and companies with a market capitalization of over Rs.3 trillion.
In the past three months, the stock is up 42 percent, while the S&P BSE Sensex is up 18 percent. For the July-September quarter (Q2FY21), Bajaj Finance had reported inline performance with increased Covid provisions and lower Opex, enabling an above-expected operating result and a standstill status that kept asset quality stable. However, analysts’ outlook for the company’s long-term prospects remains positive.
“Bajaj Finance has sailed through the headwinds and emerged stronger with a leaner operating model and robust growth forecasts. The new banking license review by the Reserve Bank of India (RBI) has recommended that large NBFCs with assets> Rs 50,000 crore with a 10 year existence can apply for a banking license, ”analysts at ICICI Securities said in a stock update.
The growth forecast of around 25 percent for fiscal year 22E and the option to apply for a banking license have also sparked renewed investor interest in the stock, the brokerage firm said with a buy rating for the stock with a price target of Rs 5,900.
“We had upgraded the stock to BUY after the quarterly results, but the multiple expansion was far higher. We believe premium multiples are coming back for Bajaj Finance, ”it said.