Waning demand likely to put brakes on Bajaj Finance's stock ride

The valuation of the country's most expensive NBFC stock at 6.6 times the FY20 book value is quite demanding

After a short period of correction for Bajaj Finance after the liquidity crisis that unfolded in September last year, the stock has been on a continuous uptrend to its current all-time high price of Rs 3,091. The 57 per cent gain from its lows last year, which have been backed by fundamentals, has helped it enter the list of the most-preferred non-banking financial company (NBFC) stocks in the last six months.

Many factors have helped Bajaj Finance stay ahead of the pack, the most important being its ability to remain relatively unhurt during the liquidity crunch — be it in