 "A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (pic: Reuters)")
Bajaj Finserv has hit a fresh record high of Rs 3,197 on the BSE in intra-day trade marking its entry into the elite league of corporate entities with a market value of over Rs 50,000 crore.
At 01:41 pm, the stock was up 2.6% at Rs 3,181 crore with a market capitalization (m-cap) of Rs 50,614 crore, the BSE data shows.
Bajaj Finserv is currently stands at 45 rank, ahead of Zee Entertainment Network, Gail (India), Vedanta, Cipla and Aurobindo Pharma in overall m-cap ranking.
In past four-months, since May 24, post March quarter results the stock of Bajaj Finserv has outperformed the market by surging 80%, as compared to 13% rise in the S&P BSE Sensex. Post June quarter results, its gain 22% against 2% gain in the benchmark index.
Bajaj Finserv, a financial conglomerate under the flagship brand of Bajaj, is a diversified group spanning across lending and insurance business. Bajaj Finserv is the holding company that includes Bajaj Finance, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.
Analysts at IIFL Institutional Equities maintain ‘buy’ rating on the stock with target price of Rs 3,340.
“Fillip from sustained performance of Bajaj Finance and potential upside from resolution of ownership in the insurance joint ventures are likely to drive upside to Bajaj Finserv stock price over the next 12-months,” the brokerage firm said in company update following meeting with management.
“We believe resolution of ownership agreement with Allianz would be the key catalyst for the stock. Divestment of stake in favour of Allianz would enable Bajaj Finserv to pay a special dividend. Acquisition of stake at or below fair value, on the other hand, would increase the intrinsic value of the business for Bajaj Finserv shareholders,” added report.
