The overall market-capitalisation (m-cap) of the stocks of Bajaj Group is now more than Rs 7.5 lakh crore ($100 billion), thanks to the gains they have witnessed this year so far.
As per data available with Ace Equity, the overall m-cap of Bajaj Group was more than Rs 7.5 lakh crore on July 6. The m-cap of the group's heavyweight, Bajaj Finance was at Rs 3.7 lakh crore.
With this, the group has joined the league of other three family-owned groups - Tatas, Reliance and Adani - that have the m-cap of more than $100 billion.
Bajaj Group is a well-diversified conglomerate with its presence in key sectors of the economy. The most notable stocks leading the rally are Bajaj Finance, Bajaj Financial Services (Finserv) and Bajaj Auto.
Shares of the most Bajaj Group stocks have clocked healthy gains in the year so far.
Positive outlook
Stocks such as Bajaj Finance, Bajaj Finserv and Bajaj Auto have been consistent in their performance and have generated wealth for their investors, Vishal Balabhadruni, Senior Research Analyst at CapitalVia Global Research pointed out.
"Bajaj Finance has been maintaining an average ROCE (return on capital employed) of 14.4 percent from FY16, ROE (return on equity) is around 16.8 percent (average) from FY16, the EBITDA margin has also been maintained around 65 percent from FY16, Balabhadruni observed.
Bajaj Financial Services has been maintaining an average ROCE of 12.7 percent (from FY16), while ROE has been around 10 percent (from FY16).
"Such numbers generate huge trust among investors and the street. In addition to it, since the group’s portfolio is well diversified in various sectors, it helps the group to mitigate any sector-specific risk. It is advisable to wait for a correction and investors may buy these stocks on dips in order to maximise their value," said Balabhadruni.
Bajaj group has created tremendous wealth for its shareholder in the last two decades. Yash Gupta, Equity Research Associate at Angel Broking underscored stock like Bajaj Finance has become a 1,000 bagger over the last 20 years and Bajaj Auto has turned 20 bagger.
"Bajaj group has one of the best corporate governance standards as well as strong business models. They did well in times of the covid pandemic and built on the growth momentum in the 2nd half of the financial year 2021," Gupta said.
"We expect their companies to continue their momentum in the financial year 2022 aided by strong consumer demand in auto as well as consumer discretionary goods. Investors can look at Bajaj Holdings and Maharashtra Scooters to indirectly invest in Bajaj group stocks. We expect the Bajaj group to do well in long term," said Gupta.
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