So, what are the key factors behind this sharp rise in the share price of Bajaj Finserv?
Let’s know a little more about this…
#1 Quarterly Results
On 28 July 2022, Bajaj Finserv announced its excellent quarterly results.
Its consolidated net profit jumped 57% for the quarter ended June 2022 13.1 billion it stood on 8.3 billion a year ago.
Revenue for the quarter grew by 145% year-on-year (YoY) 158.9 billion
The Assets Under Management (AUM) of the company’s subsidiary Bajaj Finance has exceeded 2,000 bnmark, stands at 2,040 billion
Bajaj Finance also recorded highest quarterly consolidated profit after tax (PAT) 2.5 billion in the June 2022 quarter. Thanks to strong AUM growth, higher net interest income and better asset performance.
PAT on its wholly owned corporation Bajaj Housing Finance Loan (BHFL) increased by 96%.
Bajaj Finserv appears to be benefiting from the strong performance of its own and the strong performance of its subsidiaries.
Bajaj Finserv is a consistent compounding stock Which has given both good results and a sharp increase in share prices by beating the volatility of the market. it is one of fastest growing companies in India.
#2 Stock split and bonus issue
The Board of Directors of Bajaj Finserv has approved the splitting of its equity shares in the ratio of 5:1.
In simple words, the face value of each share 5 will be divided into 5 shares of face value of 1.
According to the company exchange filing, the following describes the goals of a stock split and bonus:
The company and its subsidiaries have grown significantly in terms of business and performance over the years.
Among its peers, the company’s share price is one of the highest as well as having one of the smallest capital bases.
As the stock price rises further, it will become increasingly difficult for small potential shareholders to participate in the company’s future.
The objective of a stock split is to increase liquidity in the capital market. Additionally, it will widen the shareholder base.
In addition, the company has announced to issue bonus shares with a face value of Re 1 for every fully paid-up equity share of Rs. This means that bonus shares will be distributed after the stock split.
Corporate action events such as bonus issues and stock splits often cause changes in a company’s capital structure.
Investors have welcomed the decision with great enthusiasm.
Recent Bajaj Finserv Performance
Today, the share price of Bajaj Finserv opened with a gain of 2% 15,000. the previous one was closed 14,650.
In the last 5 trading sessions, the share price has risen by over 17%.
Bajaj Finserv hits 52-week high 19,320 on 19 October 2021. and its 52-week low 10,777, which was reached earlier this month on July 1.
On a YTD basis, the share price of Bajaj Finserv is down 11% so far.
Bajaj Finserv Share Price Performance – 1 Year
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About Bajaj Finserv
Bajaj Finserv was formed in 2007 as a result of its de-merger with Bajaj Auto.
It is the holding company of the financial services business of the Bajaj Group.
It provides solutions for asset acquisition through financing, and protects assets through general insurance. It provides family security, and life and health insurance to millions of customers, as well as income protection in the form of a retirement, and savings solution.
Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com
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