Market cap of Bajaj Finserv crosses Rs 1 trillion mark; stock hits new high

Thus far in the current calendar year 2018, Bajaj Finserv has outperformed the market by surging 20% as compared to 4.5% rise in the S&P BSE Sensex.

Shares of Bajaj Finserv entered the elite club of Rs 1 trillion market capitalisation (market-cap) after the stock price of the company hit a new high on the National Stock Exchange (NSE) in intra-day trade on Monday. The market-cap of the company touched Rs 1,002 billion (Rs 1-trillion mark) on the NSE.

On the BSE, the stock hit a new high of Rs 6,290 n intra-day trade today. At 11:40 am; Bajaj Finserv was trading 1.4% higher at Rs 6,270, having market cap of Rs 997.72 billion, the BSE data shows.

Thus far in the current calendar year 2018 (CY18), Bajaj Finserv has outperformed the market by surging 20% as compared to 4.5% rise in the S&P BSE Sensex.

Bajaj Finserv stands at number 29th position in overall market-cap ranking against at number 35 rank at beginning of CY18. The market value of company is higher than of HDFC Standard Life Insurance Company, Nestle India and Avenue Supermarts (which runs D-Mart).

Bajaj Finserv has surpassed the Sensex companies such as Adani Ports and Special Economic Zone, Gail (India), Bajaj Auto and Vedanta during the year.

“Given Bajaj group’s years of experience in the financial services industry along with extensive distribution network, we believe the entity to continue to outpace the industry in terms of profitability. Strong macro outlook on the lending business as well as the insurance businesses coupled with superior execution should translate into strong earnings for the consolidated entity,” analysts KR Choksey Shares and Securities said in Q4FY18 result update. The stock however, trading above its 12 month target price of Rs 5,893.

Bajaj Finserv was formed in April 2007 as a result of its demerger from Bajaj Auto to further the Group’s interests in financial services. This demerger enabled Bajaj Finserv to independently run the core businesses of lending, insurance and wealth advisory.

Bajaj Finserv is the holding company for the businesses dealing with financial services of the Bajaj Group. Its insurance joint ventures with Allianz SE, Germany, namely Bajaj Allianz Life Insurance Company and Bajaj Allianz General Insurance Company are engaged in life and general insurance business respectively.

Its subsidiary Bajaj Finance is a non-banking finance company engaged in consumer finance, SME finance and commercial lending and wealth management.

Bajaj Finance too hit a new high of Rs 2,398; up nearly 3% on the BSE in intra-day trade have market-cap of Rs 1.38 trillion. On Friday, Bajaj Finance had surpassed the private sector lender Axis Bank in overall market-cap ranking.