Bajaj twins suffer deep losses amid market crash; what investors may do

Bajaj twins - Bajaj Finserv and Bajaj Finance - shares dropped sharply on Monday, March 20, amid wider market sell-off as new worries over the risks of high-yield debt issued by big banks offset the feel-good effect of UBS sealing a deal to take over troubled lender Credit Suisse.

The UBS Group AG will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG and assume up to $5.4 billion in losses in a deal backed by Swiss regulators on Sunday.

Bajaj Finserv stock price touched an intraday low of Rs 1,240 or 4.69 per cent in trade, falling after three days of consecutive gain. The Bajaj Group stock is trading lower than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Overall, in the last one year, Bajaj Finserv has corrected by over 24 percent, underpeforming Sensex by more than 23 percent.

Meanwhile, Bajaj Finance share price also dropped to an intraday low of Rs 5,536, or 3.4 percent. Bajaj Finance stock price has corrected by almost 21 percent, underperforming the Sensex by over 19 percent in the last one year.

Both, Bajaj Finance and Bajaj Finserv are multibagger stocks, giving over 4,300 percent and 1,524 per cent returns, respectively, over the last 10 year.

Brokerages' view on Bajaj Finance

Domestic brokerage firm Ambit recently initiated a 'sell' call on Bajaj Finance, calling it as the 'most expensive lender' in India, adding that high growth and return on equity are already built into its valuations. Ambit sees a further downside of 18 per cent in the counter and set the target price at Rs 5,028 per share.

On the contrary, another domestic brokerage Nirmal Bang is upbeat on Bajaj Finance, it maintained a ‘buy’ rating on the stock with a target price of Rs 7,107 per share.

It said that the company’s digital strategy is progressing well, with various metrics on the app business, payments, marketplace, registering a sequential improvement. Besides, the company plans to foray into multiple product lines going forward, according to the brokerage.

Bajaj Finserv Q3FY23 results

Bajaj Finserv had reported an almost 42 percent jump in net consolidated profit in the December quarter of the financial year 2022-23. Its net consolidated profit jumped to Rs 1,782.02 crore from Rs 1,255.79 crore on year-on-year basis.

While Bajaj Finance on January 27 reported a 39.9 per cent jump net profit to a record Rs 2,973 crore for the quarter ended December 2022 compared with the corresponding period a year ago.

Pune-based Bajaj Finance's interest income increased to Rs 9,273.4 crore for the three-month period, up 27.6 per cent on a year-on-year basis, according to a regulatory filing.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.