Bajaj Group fifth Indian conglomerate to cross Rs 10 lakh crore market cap

The market capitalisation of Bajaj Group has crossed Rs 10 lakh crore, making it only the fifth conglomerate to achieve this coveted feat. Others in this elite club include Tata Group, Reliance, HDFC Bank and Adani Group.

The surge in market cap was on the back of the robust share price performance of three group companies Bajaj Auto, and Maharashtra Scooters.

Shares of Bajaj Auto jumped 71% this year, while Maharashtra Scooters was up 74% on a year-to-date basis.


The conglomerate's flagship company Bajaj Finance rose 12% so far this year, while shares of Bajaj Finserv have risen 9%.

Bajaj Finance is leading with the highest market cap of 4.57 lakh crore among the group firms, followed by Bajaj Finserv and Bajaj Auto.

Group stock talk
Analysts are quite bullish on Bajaj Finance, which has shown strong loan book growth in the recent quarters, driven by a higher-yielding consumer durable loan book, rural financing, etc.

Strong new customer acquisition and fast-growing cross-sell base franchise along with stable margins and asset quality were also factors that bode well for the company.

Jefferies is expecting over 30% upside from current levels with a target price of Rs 9,470. The brokerage expects loan growth to be around 29% over FY23-26E and NIMs of 10% in the same period.

In the recent second quarter, Bajaj Finance reported 28% year-on-year growth in consolidated net profit at Rs 3,551 crore, while net interest income increased 26% year-on-year to Rs 8,845 crore.

In contrast to Bajaj Finance, analysts are quite negative on Bajaj Auto, another flagship company of the group. UBS has a sell rating on the auto stock with a target of Rs 5600. The brokerage said the electric-three wheeler transition will dilute the margins and market share.

The global investment bank is of the view that the market is overly confident about Bajaj Auto's e-3W market share and looted margins.

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