Bajaj Finserv's m-cap crosses Rs 2 trillion as stock scales new high

Bajaj Finserv entered the elite club of companies having a market capitalisation (market-cap) of Rs 2 trillion after its stock price hit a new high of Rs 12,611.65, up 2.3 per cent in Friday's otherwise range-bound market. The stock of the Bajaj Group's holding company surpassed its previous high of Rs 12,529.15, touched on June 28, 2021.

At 10:47 am, Bajaj Finserv's market-capitalisation stood at Rs 200,464 lakh crore (Rs 2.0 trillion), BSE data shows. At the same time, the S&P BSE Sensex was down 0.08 per cent at 52,525 points. Currently, Bajaj Finserv holds the 20th position in terms of overall market-cap ranking and companies having a market-cap of over Rs 2 trillion. Bajaj Finance, another group company, stood at number 9th with a market-cap of Rs 3.7 trillion, data shows.

In the past three months, the stock of Bajaj Finserv has outperformed the market by surging 31 per cent as compared to a 6 per cent rise in the S&P BSE Sensex.

For the April-June quarter (Q1FY22), ICICI Securities expects Bajaj Finserv’s consolidated revenue to remain steady at Rs 13,846 crore, led by a pick-up in all business - lending, life, general insurance, though the absence of elevated investment gains may keep optical revenue stable.

"Finance business may see 7 per cent year-on-year (YoY) increase in topline at Rs 7,103 crore, led by traction in assets under management (AUM). Focus on individual regular business and improvement in renewals would aid life insurance premium growth at ~50 per cent YoY while healthy auto volumes, health insurance are expected to support general insurance business with premium growth at ~9 per cent YoY," the brokerage said.

However, it added that higher provision in the lending business, absence of elevated investment gains in Q1FY21 are expected to keep consolidated earnings at Rs 1,043 crore, down 14 per cent YoY. Quarter on quarter (QoQ), the company may see a revival in all businesses with marginal improvement in profitability.

Bajaj Finserv was formed as a result of its demerger from Bajaj Auto to act as a pure-play financial services business. The company holds stakes in Bajaj Allianz Life (sixth-largest private insurer), Bajaj Allianz General Insurance (second-largest general insurer), Bajaj Finance, and Bajaj Financial Solutions.