Crorepati stock: Rs 14.3 lakh invested in this stock became Rs 1 crore in 3 years
The stock has seen a staggering 538% growth in market value over the past 3 years.
By Amit Mudgill, ETMarkets.com | Updated:
NEW DELHI: As Prime minister Narendra Modi completes three years in office, reforms that his government embarked upon, strong macroeconomic fundamentals and a stable political dispensation have lifted the market value of the BSE-listed companies by Rs 40 lakh crore.
While big names such as Maruti Suzuki, IOC, HDFC and Reliance Industries contributed most to this rally in value terms, an unexpected entrant into the list of top 10 best performers left everyone surprised.
An investment of Rs 14.27 lakh in this stock three years back would have made an investor crorepati today. That accounts for a staggering 538 per cent growth in market value for this stock over the past three years. Now a largecap, this stock is Bajaj Finance (BFL).
The market-capitalisation of this stock has swelled to Rs 71,000 crore as of Friday from Rs 10,000 crore three years back. Capitaline data shows the company reported 29.31 per cent annual profit growth over the three years till FY16. Sales grew 33.64 per cent annually during this period. Analysts largely remain positive on the stock.
“We expect an earnings growth of 31 per cent (CAGR) over FY17–19E, driven by robust AUM growth (31 per cent CAGR) and an improvement in credit costs. We expect healthy return ratios with an RoA/RoE of 3.4 per cent/19 per cent by FY19E. We value Bajaj Finance at 4.6 times March 2019 book value, implying a March 2018 target of Rs 1,460,” brokerage JM Financial said in a note.
Sharekhan in another note said healthy operational parameters, AUM expansion and decent asset quality are key differentiating factors for Bajaj Finance.
“BFL has been a leading innovator in the NBFC space. Going forward, better customer mining and further improvement in systems and processes will help it maintain good profitability and stay on a strong growth trajectory,” the brokerage said.
“We upgrade our rating on the stock from hold to buy with a revised price target of Rs 1,550,” it said.
On Monday, the stock was trading at Rs 1,282 on BSE, down 0.74 per cent previous close.
The top 10 best performers in terms of market value added Rs 9 lakh crore to BSE’s market capitalisation during these three years.
While big names such as Maruti Suzuki, IOC, HDFC and Reliance Industries contributed most to this rally in value terms, an unexpected entrant into the list of top 10 best performers left everyone surprised.
An investment of Rs 14.27 lakh in this stock three years back would have made an investor crorepati today. That accounts for a staggering 538 per cent growth in market value for this stock over the past three years. Now a largecap, this stock is Bajaj Finance (BFL).
The market-capitalisation of this stock has swelled to Rs 71,000 crore as of Friday from Rs 10,000 crore three years back. Capitaline data shows the company reported 29.31 per cent annual profit growth over the three years till FY16. Sales grew 33.64 per cent annually during this period. Analysts largely remain positive on the stock.
“We expect an earnings growth of 31 per cent (CAGR) over FY17–19E, driven by robust AUM growth (31 per cent CAGR) and an improvement in credit costs. We expect healthy return ratios with an RoA/RoE of 3.4 per cent/19 per cent by FY19E. We value Bajaj Finance at 4.6 times March 2019 book value, implying a March 2018 target of Rs 1,460,” brokerage JM Financial said in a note.
Sharekhan in another note said healthy operational parameters, AUM expansion and decent asset quality are key differentiating factors for Bajaj Finance.
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“BFL has been a leading innovator in the NBFC space. Going forward, better customer mining and further improvement in systems and processes will help it maintain good profitability and stay on a strong growth trajectory,” the brokerage said.
“We upgrade our rating on the stock from hold to buy with a revised price target of Rs 1,550,” it said.
On Monday, the stock was trading at Rs 1,282 on BSE, down 0.74 per cent previous close.
The top 10 best performers in terms of market value added Rs 9 lakh crore to BSE’s market capitalisation during these three years.
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