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  1. Multibagger stock: Bajaj Finance surged over 16,000% in 7 years; should you invest?

Multibagger stock: Bajaj Finance surged over 16,000% in 7 years; should you invest?

The share price of the company has hit its fresh 52-week high of Rs 11760.05 on August 2, 2016 and 52-week low of Rs 4678 on September 23, 2015.

By: | New Delhi | Updated: August 5, 2016 3:56 PM
bajaj finance shares Bajaj Finance shares jumped over 16,000 per cent in the past seven-and-a-half years till July 2016.

Bajaj Finance shares jumped over 16,000 per cent in the past seven-and-a-half years till July 2016. The share price of the company soared from Rs 63.10 on December 31, 2008 to Rs 10,357.25 on July 29, 2016. In the past 10 years, net profit of the NBFC major soared from Rs 47.64 crore in 2006-07 to Rs 1,278.52 crore in 2015-16.

In the past nine months the scrip has almost doubled and market expert Chandan Taparia is further bullish on Bajaj Finance shares and believes, shares of the company can touch Rs 12,000 in the next 2 years. However, he said, “One can wait for the level of Rs 9,000 before taking a fresh position in Bajaj Finance shares.” The company has a market capitalisation of over Rs 50,000 crore.

Of late, the company reported 53.83 per cent rise in net profit for the quarter ended June 30, 2016 from Rs 275.63 crore in the corresponding quarter a year ago. Operating profit of the company grew by 39.59 per cent year-on-year to Rs 1550.82 crore during the quarter under review against Rs 1110.99 crore in the corresponding quarter a year ago.

Bajaj Finance in July announced that the board at its meeting held on July 26, 2016 has approved sub-division of equity shares of face value of Rs 10 each into equity shares of face value of Rs 2 each and issue of one fully paid bonus equity share of the face value of Rs 2 each for one equity share of the face value of Rs 2 each (as adjusted for subdivision of shares).

The share price of the company has hit its fresh 52-week high of Rs 11760.05 on August 2, 2016 and 52-week low of Rs 4678 on September 23, 2015. On Friday, Bajaj Finance shares were trading 0.72 per cent down at Rs 9,905 in the afternoon trade (at 12.50 pm). Shares of the company were trading at trailing-twelve months price-to-earnings ratio of 37.67 against industry P/E of 24.73, indicating over valuation of stocks.

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