Bajaj Holdings & Investments Ltd has rallied by over 70 per cent so far in 2021 compared to over 23 per cent upside seen in the Nifty50 in the same period.

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The company with a market capitalization of more than Rs 58,000 cr hit a fresh 52-week high of Rs 5350 on 2 December. It traded in a range of about 500 points between the September and November period.

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The recent price action in December triggered a range breakout on the daily charts. The momentum could take the stock towards Rs 6000-6700 in the next 2 quarters or 6 months that translates into an upside of nearly 30 per cent from Rs 5186 recorded on 1 December.

Bajaj Holdings and Investment Limited (BHIL) holds Bajaj Group’s investments in two flagship companies - Bajaj Auto Limited (BAL – 35.77% stake) and Bajaj Finserv (BFS – 41.63% stake).

BFS has three key subsidiaries, namely Bajaj Finance Limited (BFL), Bajaj Allianz General Insurance Co. (BAGIC), and Bajaj Allianz Life Insurance Co. (BALIC).

The company reported a strong set of numbers for the September quarter. “BHIL’s consolidated income from operations increased 26.7 per cent on a year-on-year basis to Rs147 crore in Q2FY22, driven 189% increase in dividend income, 5% increase in rental income and 2.1% increase in interest income,” Sharekhan said in a note.

The company benefitted from the revised dividend policy of its associate companies. The share of profit from associates improved 39.7% y-o-y to Rs1,117.8 crore in Q2FY21.

Sharekhan maintains a buy rating on the company with a target price of Rs 6147.

Technically, the stock price started its recent up move from 3455 (Jun 21). The super trend indicated positive mode and the 200-DMA trended in a rising mode which auger well for the bulls.

“The stock made a high of 5122 in Sept 2021 followed by a corrective move till 4630 and again after forming higher bottoms at 4800 made a new high at 5202. The super trend indicator is continuously in positive mode from May 2021,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

“Recently, the stock gave Range breakouts & made a high of 5200 accompanied by volumes over and above all highs from Sept 2021. The KST, ADX, and MACD suggest a possible firm uptrend,” he said.

Gala further added that the possible targets are 6000-6700. If the stock price corrects downwards the buy levels are (4970-4830)-4700-(4600-4540), and a stop loss to be observed in the trade is 4300.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)