Bajaj Finance gains, the stock rises by nearly 8 per cent
Yesterday’s trading session proved out to be a striking session for Bajaj finance as their share prices touched new heights!
Bajaj Finance share price closed at Rs 6086.4 and reached a record high of Rs 6115 on Thursday, June 10, making its market cap ₹ 3.67 lakh cr.
What made Bajaj Finserv hit a new 52-week High?
BofA Securities had an investor call with Rajeev Jain, MD, Bajaj Finance. Most investors were curious about Bajaj Finserv’s elaborate ‘Business Transformation’ project. The project is projected to go live by early-Oct 2021.
BofA Securities is Bullshit on Bajaj’s and confident about the future growth prospects of the company. The technology platform discussed in the business transformation plan will allow Bajaj Finance to achieve the twin objectives of:
- Encompassing a wallet share of 26.9 mn cross-sell customers with improved customer engagement and reduced customer friction – the focus of the app is on improving service delivery.
- Target 90mn+ potential customers with high approval rates (more than 80%) while reducing costs by introducing irregularities between income and opex.
Additionally, it will prominently enhance Bajaj Finserv’s capability to offer local offers along with an integrated Rewards management system. This will allow Bajaj Finserv to occupy a higher sales share of its 110k+ merchant partners. The new tech platform necessitates a single app sign in to access Bajaj Pay, 5 marketplace apps and 28-30 accord apps. BofA Securities apprehends that the technology platform will further accelerate BAF’s growth route and market share gains.
Bajaj Finserv got a good Kickstart in June ahead of the lockdown. Bajaj Finserv 52-week low is Rs 2199.
Bajaj Finserv restated that the financial impact of COVID’s second wave has been lesser as compared to the first wave. May 2021 suffered many localized lockdowns with declining business volumes by 40-60% of planned levels. The pick-up in early Jun 2021 (especially in large scale B2B business) has been strong, with Bajaj Finance hoping to reach 75-80% off Mar 2021 levels post 14th Jun 2021.
Bajaj Finance Company Description:
Bajaj Finance Limited is a subsidiary of Bajaj Finserv. It is an Indian non-banking financial corporation that deals in consumer finance, small and medium-sized businesses, wealth management and lending to businesses.