Bajaj finance had an impressive run in the past two years. Exactly two years ago, on 3rd Feb 2014, Stock price closed @Rs.1492.4 on NSE and today it’s closed at a new 52 week high when the majority of banking and financial stocks are making new 52 week low. This is a classic example, which shows that picking the right stock and holding with conviction & patience pays.
In Q2, net profit jumped by 42% followed by 58% in Q3. Fundamentally, gross NPA and net NPA performance have improved because of the provisions for loan losses in excess of RBI requirements. Generally, news flows after the price move, which is like postmortem. For technical traders, price action shown in charts depicts what is about to come.
Before taking the position, one has to cross check the supporting volume for the strength of the move. Investors can start accumulating this gem around Rs.6000, whereas traders can play the breakout for sharp up-move. One can argue that the stock is overvalued and my advice would be not to see the price but to see the value! While aiming to make money in brisk, don’t forget the risk.
Information presented in the above article is available in public domain and it should not be treated as “Research Report”
Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI
“Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in BAJAJFINANCE.