Growth or stability, the dilemma for investors looking at Bajaj Finance

With the stock doubling in six months, the consumer lender has outperformed peers

It's not often that a company gives a cautious outlook and yet, its stock price scales a new high. The case in point is Bajaj Finance and with the stock doubling in six months, and nearing the Rs 5,000 a share zone, its valuations are once again in the expensive territory of 6.5x FY22 estimated book. At these levels, the question is whether investors should own the stock for its pedigree and market position despite its valuation not justifying the slowing pace of growth.
 

The company recently guided that FY22 may be a year of normalcy, though the steady state