India’s NBFC major Bajaj Finance, along with HCL Tech will be included in the 30-share BSE Sensex effective December 24, 2018. Notably, IT firm Wipro and Adani Ports will be excluded from the index on the same day. With the addition of Bajaj Finance into the headline index, the financial sector’s weightage in the Sensex—already the highest—on the benchmark index will go up further. Bajaj Finance shares have surged 36% this year, making it one of the best performing scrips in the year so far. We take a look at three interesting nuggets about Bajaj Finance shares.
Bajaj Finance among fastest stocks
Bajaj Finance shares feature among the fastest stocks in the last 5 years, according to a report. According to Motilal Oswal’s 23rd Wealth Creation study, Bajaj Finance shares have multiplied wealth at a price CAGR of a whopping 73% in the last 5 years. Interestingly, Bajaj Finance shares have multiplied wealth by more than 16 times in the last 5 year period.
Bajaj Finance among biggest wealth creators
Bajaj Finance has also been one of the biggest wealth creators in the last 10 years, creating wealth to the tune of Rs 902 billion in the last 5 year period since 2013, according to the study. Bajaj Finance shares ranked as the 10 biggest wealth creator in the last 5 years according to Motilal Oswal’s study.
HSBC on Bajaj Finance
HSBC has initiated coverage on the non-banking financial company Bajaj Finance with a buy rating on the shares. HSBC has a share price target of Rs 3,000. Bajaj Finance shares closed yesrerday at Rs 2,369.80. HSBC said in its rating report that the bank management has demonstrated its execution capability, making it as one of the fastest-growing and most profitable banking, financial services and insurance (BFSI) companies in India, with a valuation premium to peers. The stock has a PE ratio of 30.46 for the next 12 months, highest among its peers, Reuters reported citing Refinitiv data.