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This multibagger stock doubled shareholder's money in 1 year; hit all-time high today

This multibagger stock doubled shareholder's money in 1 year; hit all-time high today

The stock rose 3.5 per cent to hit an all-time high of Rs 7,676 on Friday. With a market capitalisation of more than Rs 4,55,000 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.

This multibagger stock doubled shareholder's money in 1 year; hit all-time high today This multibagger stock doubled shareholder's money in 1 year; hit all-time high today

Amid the astounding market rally, a handful of companies have doubled investors' money in the last 12 months. Shares of Bajaj Finance have surged from Rs 3,469.8 to Rs 7,676.00 mark today in the last 12 months - yielding around 121 per cent in this period. In comparison, the Nifty 50 index gained over 53 per cent and the S&P BSE Sensex rose over 52 per cent.

The multibagger stock has zoomed 595.65 per cent in the last five years and has risen 43 per cent since the beginning of this year. Long-term investors have made fortunes by investing in this stock as it has zoomed 12,302 per cent in the last ten years.

The stock rose 3.5 per cent to hit an all-time high of Rs 7,676 on Friday. With a market capitalisation of more than Rs 4,55,000 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.

According to MarketsMojo, Bajaj Finance has strong long-term fundamental strength with an average Return on Equity (ROE) of 15.91%. The technical trend has improved from Mildly Bullish on August 3, 2021, and the stock is technically in a Bullish range now. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST and DOW. With its market cap of more than Rs 4,55,000 crore, it is the biggest company in the sector and constitutes 20.34% of the entire sector
 
However, the valuation seems to be expensive right now. The company has High Institutional Holdings at 33.36%. However, it noted that the valuation is expensive right now.

Motilal Oswal believes that increasing per capita income, the gradual financialization of savings, growing awareness with targeted marketing campaigns such as ‘Mutual Funds Sahi Hai’, and improving reach, with digital platforms, will lead to strong AUM growth ahead.

"Margin is likely to see a sharp improvement in FY22E on a) lower cost of funds, b) reduced liquidity, and c) a favorable base due to interest
reversals. While FY21 was an aberration, distribution income, as a proportion of total fee and commission income for BAF, has been on an increasing trajectory, improving to 43% in FY20 from 30% in FY18. With the digital ecosystem play and one-stop-shop offering to its large cross-sell customer franchise, distribution income growth can quickly accelerate over FY23-24E. We estimate ~21% CAGR in fee and commission income over FY21-24E," the brokerage house noted.

Bajaj Finance reported a consolidated profit of Rs 1,002 crore for the quarter ended June 30 as compared to Rs 962 crore recorded during the same quarter last year. On a standalone basis, the company's profit declined to Rs 843 crore in Q1 FY22 against Rs 870 crore in Q1 FY21.

The consolidated net interest income (NII) for Q1 rose 8 per cent to Rs 4,489 crore against Rs 4,152 crore in Q1 FY21. The company's assets under management stood at Rs 1.59 lakh crore as compared with Rs 1.38 lakh crore during the same period last year. New loans booked during Q1 FY22 stood at 4.63 million as against 1.75 million in Q1 FY21, the company said.

"During the quarter, the company has done accelerated write-offs of Rs 113 crore of principal outstanding on account of COVID-19 related stress. The company holds a management overlay and macro provision of Rs 483 crore as of June 30," Bajaj Finance said in a statement.