Bajaj Finance is a NBFC company that provides consumer loans, commercial lending, SME loans, and vehicle finance. The company was founded in 1987 and is based in Pune, India. As of March 31, 2020, Bajaj Finance had assets under management (AUM) of Rs. 1,206 crores. The company’s share price has been on a tear lately, more than doubling in the last year. Investors are betting on the company’s growth potential as India’s economy continues to grow. In this blog post, we will take a look at Bajaj Finance’s share price performance and what factors are driving the company’s growth.
Bajaj Finance Ltd. is an Indian non-banking financial company (NBFC) owned by the Bajaj Group. The company offers a range of financial products, including loans, credit cards, and investment products. As of March 31, 2020, Bajaj Finance had a market capitalization of ₹ 1.39 trillion (US$19 billion).
The Bajaj finance share price has been on a tear in recent years, rising from around ₹1,000 in early 2017 to its all-time high of ₹4,151 in December 2019. The stock has since pulled back to around ₹3,200 levels but still remains up nearly 3x from its 2017 lows. So what has been driving the Bajaj finance share price higher?
One key driver has been the company’s strong growth in loan assets. Loan assets grew from ₹74 billion in FY2017 to ₹2 trillion in FY2020, driven by strong growth in both retail and wholesale loans. Retail loans have grown at a compound annual rate of 45% over the last three years while wholesale loans have grown at a CAGR of 35%. This growth has been driven by the company’s focus on high-quality borrowers and its use of technology to improve its lending process.
Another key driver for the Bajaj finance share price has been the company
Bajaj Finance is one of the largest non-banking financial companies in India. The company offers a wide range of financial products and services to its customers including loans, credit cards, investments, and insurance.
The company’s share price has been on a roll in recent years, thanks to strong growth in its business. In the last five years, the company’s share price has quadrupled. As of today, the company’s shares are trading at Rs 4,000 apiece, giving it a market capitalisation of nearly Rs 2 lakh crore.
What has been driving Bajaj Finance’s share price growth?
There are three key factors that have fuelled Bajaj Finance’s share price growth in recent years:
1) Strong growth in business: Bajaj Finance has reported strong growth in its business in recent years. The company’s loan portfolio has grown at a compound annual rate of nearly 50% over the last five years. This has driven strong growth in the company’s profits and shareholder returns.
2) Improved asset quality: Bajaj Finance’s asset quality (the proportion of non-performing assets to total assets) has improved significantly over the last few years. This is important because it indicates that the company is able to recover its loans better than before. This improvement in asset quality has been one of the key drivers of the company’s share price growth.
Bajaj Finance is one of the top NBFCs in India and its share price has been on a roll in recent years. The company’s shares have given stellar returns in the last five years. In fact, Bajaj Finance stock is up nearly 1000% in the last five years!
With such strong performance, it is no wonder that investors are interested in Bajaj Finance shares. However, before investing in any stock, it is important to do your own research and understand the risks involved.
Here’s a closer look at Bajaj Finance shares and what you need to know before investing.
What is Bajaj Finance?
Bajaj Finance Ltd. is an Indian non-banking financial company (NBFC) that provides consumer finance, commercial lending, SME lending, and rural lending products and services. The company was founded in 1987 and is headquartered in Pune, Maharashtra. As of March 2019, Bajaja finance had a total asset base of Rs. 1 trillion (~$14 billion).
Why invest in Bajaja finance?
There are several reasons why you might consider investing in Baja finance shares:
1) Strong growth prospects: Baja finance is well-positioned to benefit from the growing demand for credit in India. The company has been posting strong growth numbers over the last few years with its loan book expanding at a compound annual growth