Bajaj Finance- more hype by the Fund Managers

By Research Desk
about 3 years ago

Bajaj Finance share now at Rs. 5,500 is ruling at PBV of 8.95x as at 31-3-21 and at PBV of 7.85x, one year forward. Even PE on historic is at 74x and at 60x on 1 year forward. Why one should buy such an expensive NBFC, when there are over 50 listed NBFCs available, practically from all pedigree  promoter and houses.

Bajaj Finance had impairement of Rs. 5,969 cr in FY 21 (Rs. 3,929 cr in FY 20), PBT Rs. 5,992 cr (Rs. 7,322 cr in FY 20), PAT at Rs. 4,420 cr. (Rs. 5,264 cr in FY20), GNPA at 1.79% and NNPA at 0.75% as at 31-3-21. Even AUM of Rs. 1,52,947 cr, as at 31-3-21, had 32% of this AUM, of low marginn Mortgage Business of Rs. 49,592 cr.

May be MF & PMS Fund managers  are heavily invested in the stock and want it to trade rich. Infact that is the reason, share swiftly moves up from low as well due to low float, as can be seen share having risen from low of Rs. 4,362 about 20 days back, inspite of dull Q4 numbers, seen on 27th April, when it was trading at Rs. 4,865.

It reminds us, as usual of Media, who likes all the result, which are liked by the Fund managers or vested interests Media, as seen in case of RIL as well. One pays such high valuation, if company has entry barrier, high growth or sector high multiple, or MNC promoter, while all are seen missing in the stock.
This is not a buy or sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.

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