This NBFC stock has traveled from less than ₹2k to ₹15k in 7 years

Stock will be backed Bajaj Group Bajaj Finserv Which focuses on providing services such as lending, asset management, wealth management and insurance.

on Friday, last week, Bajaj Finserv shares closed more than 15,770.35 each 41.05 or 0.26%. It is listed under ‘A’ group of stocks on the exchange and is also part of the Sensex 30 benchmark. The stock is one of the top NBFCs with a market valuation of approx. 2,51,191.60 crore.

In October last year, the shares touched an all-time high of 19,319.95 each. However, stocks declined in the first six months of 2022 as there was deep volatility in the markets with bears across all sectoral indices including NBFCs. However, shares of Bajaj Finserv have seen a strong rally since the beginning of July.

Taking into account Friday’s closing price, Bajaj Finserv shares have gained over 44% in less than two months to August 12, 2022.

But investors who bought shares in August 2015 are likely to benefit the most from Bajaj Finserv’s strong performance over the past seven years.

Just seven years ago, on 12th August 2015, a few days before independence, the shares of Bajaj Finserv were approx. 1,976.90 each on the BSE.

Fast forward so far, as of the end of August 12 this year, stocks have risen 13,793.45 each in these seven years. In percentage terms, the shares are up 697.73% from August 12, 2015 levels.

As per the return calculator of Axis Direct, if an investor invests 1 lakh in Bajaj Finserv in August 2015, shares gave high returns 8 lakhs. if the investment is 5 lakh in Bajaj Finserv shares, so the returns are close 41 lakhs. Feather 10 lakh investment, returns are over 81 lakhs, and if the investment is approx. 15 Lakhs in Shares–So the Returns Are Around 1.2 crores.

Thus, your profit on the stock exchanges depends on the amount invested and the number of shares purchased by the listed company. In addition, there are certain tax rates and other charges on shares such as brokerage charges, which need to be met, and after making these payments, an investor realizes his actual return on his investment.

Last month, Bajaj Finserv announced its financial performance for the quarter ended June 30, 2022 (Q1FY23).

In Q1FY23, the NBFC major posted a consolidated net profit of 57% higher than Rs 1,309 crore 833 crore in the same period last year. Meanwhile, the total income was Up 14% from Rs 15,888 crore in Q1FY23 13,949 crore in Q1 a year ago. Also, interest income increased by 29.32% 8,971.49 crore in Q1FY23 as against 6,937.32 crore in Q1FY22.

Should you invest in Bajaj Finserv shares?

Analysts are still optimistic about the company, though they have lowered their price targets.

Research analysts at ICICI Direct, in their note dated July 31, said that the share price of Bajaj Finserv has risen by over ~3x in the last five years (from Rs. 5308 to August 2017 15,007) in July 2022. Analysts maintain a ‘Buy’ rating on the shares of Bajaj Finserv. “Growth in Lending AUM and anticipated healthy growth in the insurance segment with a focus on digitization remains positive. We value Finserve at ~31x FY24E EPS and lower our target price from this. before 18,900 17600 per share.”

According to him, the major triggers for the future price performance of the company are:

– Digital transformation, customer addition and ambitious targets on AUM growth (from 25-27% CAGR 3.8 – 4 lakh crore by FY25) to boost profitability.

– Product launches and selective product mix to aid premium growth; Focus on claims and OPEX to aid income in the life and general insurance business.

Healthy traction across all businesses to drive consolidated revenue and earnings.

Bajaj Finserv is also the parent of another listed NBFC major, Bajaj Finance. While it has majority stake in Bajaj Life Insurance and Bajaj General Insurance.

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