During the recent rally in the stock market, two of Bajaj’s twin companies – Bajaj Finserv and Bajaj Finance have seen a lot of jump. Bajaj Finserv has given multibagger returns so far this year and its shares have climbed over 100% since January 1. On the other hand, Bajaj Finance has given a return of around 50% this year.
The shares of Bajaj Finance have gained almost 7.2 times in the last 5 years. In September 2016, the shares of Bajaj Finance were getting at a price of Rs 1,100, which has reached the level of Rs 7,800 in September 2021. On the other hand, the shares of Bajaj Finserv have grown almost 6 times in the last 5 years. In September 2016, the shares of Bajaj Finserv were trading at Rs 2,900, which has now reached Rs 18,000 per share.
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ICIC Securities retains “Buy” rating on Bajaj Finance. “We have increased our target price for Bajaj Finance from Rs 6,900 to Rs 8,950. We believe that the premium valuation of the company will continue,” the brokerage firm said.
Meanwhile, ICIC Securities has upgraded the rating of Bajaj Finserv from “Hold” to “Buy”. Along with this, it has also increased the target price for the stock from Rs 13,500 to Rs 20,200. The brokerage firm said that the company’s strong premium growth and select product mix will help its earnings and growth in the life and general insurance sectors.
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The brokerage said Bajaj Finance is one of the dominant players in the consumer finance sector. Apart from this, it has also entered the sectors like housing, lending to SMEs etc. and is taking advantage of the opportunities before it. The move from a fin-tech company to a pure lender could boost its valuation.
Bajaj Finserv, a financial conglomerate, also has stakes in Bajaj Finance, Bajaj Life Insurance and Bajaj General Life Insurance. The brokerage firm said that the company’s sustainability, fast growth in business and strong profits can be monitored.
Rakesh Jhunjhunwala earned Rs 62 crore in this stock in just 9 trading sessions, what do you have?
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