ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • ZNAA'22
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Whopping 1 lakh jobs on the cards in aviation and aeronautical manufacturing sector by 2024, says Minister
  • Money Guru: 10 funds for financial independence, this 15th August - details
  • India's forex reserves jump 60x since 1990s, surge 335 times since Independence | Check this data
  • India@100: Anil Singhvi predicts Nifty will reach 1,75,000 in next 25 years - Here's why
Read in App
Business News » India News

2014 to 2019 elections: This stock turned Rs 5 lakh to over Rs 50 lakh in 5 years - Check this amazing Rs 800 to Rs 8k trip!

NBFC Bajaj Finserv is a great example of how an election can boost sentiments and drive returns to unimaginable levels.   

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
2014 to 2019 elections: This stock turned Rs 5 lakh to over Rs 50 lakh in 5 years - Check this amazing Rs 800 to Rs 8k trip!
Markets soared in early hours of Thursday's trading session. Photo: Reuters

Markets soared in the morning as early Lok Sabha Election Results 2019 counting trends showed the NDA retaining power booming stage. It is clear, Dalal Street continues to be a money making machine although since then they have retreated today. Yes, it is clear elections do impact markets! So, let us go back in time and imagine that you had invested in a stock five years ago after 2014 election results were announced. Guess what! You definitely would be a very rich man today if you had invested in this stock. NBFC Bajaj Finserv is a great example of how an election can boost sentiments and drive returns to unimaginable levels. 

On Thursday, Bajaj Finserv share price was trading at Rs 8,113.10 per piece down by Rs 122.65 or 1.49%. But just two days ago, this company jumped to a new high of Rs 8,327.70 per piece. Here is the timeline of this success story.

Firstly, in a year Bajaj Finserv gave nearly 44% returns to investors. On May 23, 2018, the company was trading near Rs 5,797-levels. Now, it has rocketed by another Rs 2,530. 

But wait there’s more! Let’s go back to 2014 election when citizens, markets and investors were also hoping for a NDA win. The counting of votes were done on May 16, 2014. Data given on Sensex reveals that, Bajaj Finserv was trading near just Rs 819 on that day. One can only imagine the growth investors would have clocked if they had  then invested in this blockbuster. 

In five year’s time, returns from Bajaj Finserv has been nine times higher from May 2014 levels. The company has risen by over Rs 7,500 or 916.37%. 

For example - If you had invested Rs 5 lakh in Bajaj Finserv on May 16,2016, now your gains would be higher by 916.37%. That comes around over Rs 45.85 lakh. You take home over Rs 50.85 lakh. Yes, unbelievable but the growth has been tremendous in Bajaj Finserv shares. 

What should you do ahead?

There are two options left, either profit booking or buy more when the shares drop ahead. That is because, the company’s shares are already at peak level, but that doesn’t brings down the potential in business. 

Adarsh Parasrampuria, Amit Nanavati and Tanuj Kyal, analysts at Nomura said, “BAF has delivered an AUM of 41% y/y and PAT growth of 60% in 4QFY19/FY19 with stable asset quality (adjusted for IL&FS). We believe BAF’s key strength lies in its deepening distribution with customer touchpoints and customer franchise potentially recording ~30% CAGR over the past 2-3 years. With ~35mn customers and ~20mn cross sell potential within that, we believe BAF can continue to deliver 30% loan growth over the medium term and current consumption slowdown is not having a big impact on BAF’s near-term growth. BAF currently trades at 26x FY21F P/E.”

The trio added, “ (1) Life business is turning around as it is gaining scale and it has generated a post over-run VNB of INR1.5bn (7% VNB margins) in 5 years – we value the life business at IN226bn (just 13% of our SOTP value); and (2) high loss ratio in the crop business and higher opex due to digital initiatives have impacted Bajaj General’s FY19 performance after a strong improvement over FY14-18. We expect combined ratios of 95% in FY20/21F vs. 92%/97% in FY18/19.”

Following, Nomura analysts add, “ BAF contributes ~70% of our SOTP value and will remain a key stock catalyst. We expect ~30% AUM and +30% earnings CAGR over FY19-22F and in spite of that valuations imply 27x FY21F P/E for BAF which is demanding even for its own growth potential.”

Hence, Nomura says, “Our new TP of INR8,250 factors in 28x FY21F P/E for BAF and 26x PFY21F P/E for the general insurance business.”

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Narendra Modilok sabha election resultsBajaj Finservbjp partyMarkets
Written By: Pooja Jaiswar
Updated: Thu, May 23, 2019
03:44 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Har Ghar Tiranga Certificate Download: easy steps to download; celebration dates, objective and much more Har Ghar Tiranga Certificate Download: easy steps to download; celebration dates, objective and much more
India expanding strategic petroleum reserves, diversifying its oil import sources: S&P India expanding strategic petroleum reserves, diversifying its oil import sources: S&P
PM Narendra Modi to chair NITI Aayog governing council meeting on Sunday PM Narendra Modi to chair NITI Aayog governing council meeting on Sunday
Reduce personal income tax to spur economic activities - CII urges Modi government Reduce personal income tax to spur economic activities - CII urges Modi government
CWG 2022: Historic GOLD win! PM Narendra Modi lauds Indian lawn bowls team CWG 2022: Historic GOLD win! PM Narendra Modi lauds Indian lawn bowls team

LATEST NEWS

Apple iPhone 14 launch in September - Check latest updates, release date, price, specifications and more

Apple iPhone 14 launch - Color options for all iPhone models leaked! Check release date, price and more

Tata Chemicals Quarterly Results: Check Q1 net profit, revenue and other details

Red alert for heavy rainfall issued by IMD in these states till August 10 - Details

Raksha Bandhan 2022: Gift your sister stocks from capital market for bumper returns - Full list

TSLPRB Constable exam dates 2022 for jobs recruitments rescheduled; Check new exam dates, direct link to download hall ticket and more

Stock Markets: REVEALED! Why world economies fearing recession but India is emerging even stronger

5G Network launch date: Expect roll out of high-speed internet services by this time, says minister

Har Ghar Tiranga campaign: India Post delivering National Flag for FREE; Steps to buy Tricolour online at ePostoffice portal

Raksha Bandhan 2022: WhatsApp status, stickers, GIFs - How to download, send and more

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV