InvestorQ : How do you see the prospects of Bajaj Finance now that its market cap has crossed Rs.300.000 crore?
Niti Shenoi made post

How do you see the prospects of Bajaj Finance now that its market cap has crossed Rs.300.000 crore?

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ishika Banerjee answered.
1 month ago
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You are right, Bajaj Finance is the latest Indian company to enter the exclusive club of companies with market cap above Rs.300,000 crore. In fact, this makes Bajaj Finance the ninth most valuable company on the Nifty index and this is amazing because the stock was almost in the doldrums just about a few months ago.

The stock has gotten close to Rs.5000 in a very short span of time. What has been even more gratifying about Bajaj Finance’s performance is that it has come in the midst of flat and even falling market conditions. Bajaj Finance has benefited from higher than expected operating profit and extremely stable asset quality even as other NBFCs suffered.

Bajaj Finance adopted a leaner model in tough times and that seen them through better. Markets are expecting that the worst may be over and Bajaj Finance should get back to higher valuation multiples. Also, the gross NPA data shows that the moratorium has not had a major negative impact and that has worked in favour of Bajaj Finance.

There is one more factor that works in favour of the stock. The new NBFC regulations will make the consolidation in the NBFC space real as more customers will gravitate to large NBFCs that play safe on asset quality and are part of reputed business groups. Bajaj Finance is likely to be a direct beneficiary of this shift.

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