The stock of Bajaj Finance Ltd has more than doubled in the last year, compared to a 55 percent rise in the Nifty50 index.
The financial impact of the second Covid-19 wave, according to Bajaj Finance Ltd., will be substantially less than the first, with the company remaining open for business across all categories.
According to technical analysts, if the current trend continues, the stock could reach Rs 7,000-8,000 in the medium term.
The Department of Economic Affairs, in its monthly report, predicted that the second wave's economic impact would be limited to the first quarter. In a mid-quarter company report, Bajaj Finance said its asset quality had deteriorated in Q1 and Q2 due to stringent lockdowns in most parts of India to prevent a resurgence of coronavirus cases.
Bajaj Finance is working on a "business transformation project" that will launch in early October.
BofA Securities is Bullish on this massive NBFC and optimistic about the company's future growth potential.
Following upbeat management comments on the company's new digital transformation initiatives, hares of the country's largest NBFC rose 7% to Rs 6,087. The company's management underlined that the worst of the lockdown's effects were passed and that demand will rise up in June.
Bajaj Finance's consolidated net profit increased by 42% to Rs 1,347 crore in the January-March quarter of the fiscal year 2019-20, compared to Rs 948 crore the previous fiscal year.
Shares of Bajaj Finance were trading at Rs 6,213, up 2.09% on NSE at 11.51 am IST. It touched an intra-day high of Rs 6,230.00 during the trade.
Market Cap: 3.75LCr
P/E ratio: 85.17
One year Return: 165.83%
Five year Return: 725.67%
52-Week high: 6,230.00
Year to date increase: 17.75%
Over a three-year period, the stock generated a return of 170.47%, compared to 49.66% for Nifty Financial Services.