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Should you buy Bajaj Finserv after shares turn ex-split, bonus?

Should you buy Bajaj Finserv after shares turn ex-split, bonus?

NBFC-giant Bajaj Finserv skyrocketed by nearly 8% on Tuesday after the shares turned ex-split and ex-bonus ahead of their record date. Investors held a buying sentiment throughout the trading session. The large-cap company has announced 1:1 bonus shares and a 5:1 stock split for eligible shareholders. Through these incentives, Bajaj Finserv encourages small potential shareholders to partake in the company’s future. After the ex-date, Bajaj Finserv shares have become cheaper and affordable for both new and existing investors. Bajaj Finserv has set September 14 as the record date for both bonus issue and stock split. Accordingly, the shares have corrected on September 13 which is the ex-date for these benefits. 

On BSE, Bajaj Finserv shares rose by ₹68.65 or 4% to settle at ₹1784.45 apiece. The shares have touched an intraday high of ₹1846 apiece – resulting in at least a 7.6% jump in the day. The NBFC’s market valuation is around ₹2,84,229.95 crore. Last month, while announcing the stock split and bonus issue, Bajaj Finserv said, “the Company and its subsidiaries have grown significantly, in terms of business and performance, over the years. This is reflected in the share price of the Company, which touched a peak of Rs. 19,325 in October 2021. The price since then has hovered around ₹12,200. Currently, the retail/individual shareholders comprise 98% of the total number of shareholders holding around 17.52% of the paid-up value of shares. Amongst its peers, the share price of the Company is one of the highest while having one of the smallest capital bases.” It added, “As and when the stock price rises further, it will be increasingly difficult for small potential shareholders to partake in the company’s future.” Bajaj Finserv bonus issueThe NBFC has announced a bonus issue of 796,404,635 equity shares having a face value of Re 1 each fully paid up. The ratio of bonus shares is 1:1, simply put, Bajaj Finserv will issue one bonus equity share for every existing fully paid-up equity share. Bajaj Finserv’s free reserves required for implementing the bonus issue aggregate to over ₹79.64 crore.
Notably, as of March 31, 2022, the company’s free reserves balance stood around ₹4,185.56 crore. Bajaj Finserv stock splitThe company will split each existing equity share having a face value of ₹5 each into five equity shares having a face value of Re 1 per equity share fully paid up — taking the ratio to 5:1. The company plans to complete the stock split process on or before September 26, as per the regulatory filing. Should you buy Bajaj Finserv shares after the ex-split and ex-bonus date?In its research note on Tuesday, ICICI Direct’s analysts said, “Ex-split & bonus date is today and the record date is September 14. Accordingly, the share price has been adjusted to opening price of ₹1757/share against closing price of ₹17158/share yesterday.” On stock valuation, the analysts note said, “Bajaj Finserv’s share price has grown by over~3x in the past five years,” adding, “We revise our recommendation from BUY to HOLD.” “Pick-up in lending AUM and anticipated healthy growth in insurance segment coupled with focus on digitisation remain positives. However, holding company discount has narrowed with recent run-up in stock price. Thus, we value Bajaj Finserv at ~33x FY24E EPS (factoring 10% discount) and revise our target price to ₹1850/share,” the analysts note added. Among key triggers for future performance as per ICICI Direct’s note are — – Digital transformation, client additions, and ambitious targets on AUM growth (25-27% CAGR to ₹3.8–4 lakh crore by FY25) to boost profitability – Product launch and selective product mix to aid premium growth; focus on claims and opex to aid earnings in life and general insurance business – Healthy traction in all businesses to drive consolidated revenue & earnings Bajaj Finserv is the holding company for the businesses dealing with financial services of Bajaj Group. The company serves millions of customers in the financial services space by providing solutions for asset acquisition through financing, asset protection through general insurance, family protection, and income protection in the form of life and health insurance, and retirement and savings solutions.   Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Profit up 37% to Rs 1,346 cr

Profit up 37% to Rs 1,346 cr

Bajaj Finserv Ltd (BFS) on Thursday reported a 37.5 per cent rise in its consolidated net profit to Rs 1,346 crore for the quarter ended March 2022. BFS, the holding company of various financial businesses under the Bajaj group, had reported a net profit of Rs 979 crore in the year-ago period.Its consolidated total income rose 22.5 per cent to Rs 18,862 crore during the January-March period of 2021-22, from Rs 15,387 crore a year ago, Bajaj Finserve said in a regulatory filing.The consolidated numbers include the results of Bajaj Finance Ltd (BFL), Bajaj Allianz General Insurance Co Ltd (BAGIC) and Bajaj Allianz Life Insurance Co Ltd (BALIC).The company said it has recorded its highest-ever assets under management and annual consolidated profit after tax in 2021-22. BAGIC maintained its market position and underwriting discipline where most peers continued to chase market share, it said, adding the general insurer also recorded its highest-ever gross written premium and profit after tax during the year. BALIC continued its excellent performance and recorded industry-beating growth of 49 per cent in individual rated new business premium in FY22, BFS said.It also recorded the highest-ever gross written premium and strong growth in new business value in FY22.Bajaj Finserv said the board of directors of the company approved a dividend of Rs 4 per share for the financial year ended March 2022. The total amount of dividend is Rs 64 crore, the company said.Shares of the company traded at Rs 14,994.70 apiece on BSE, up by 1.12 per cent from the previous close.(With inputs from PTI)

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Published on: Thursday, April 28, 2022, 04:10 PM IST

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This Holi, secure your wallet and smartphone with Bajaj Finserv

This Holi, secure your wallet and smartphone with Bajaj Finserv

Holi, the festival of colours, is one of the most popular celebrations in India. Apart from being a prominent festival among locals, it is also a huge tourist attraction. The festival of Holi usually involves celebrations in large groups and crowded spaces. And it is this aspect that makes it essential to keep one’s belongings, such as mobile phones, wallets, cash, bank cards and other items, safe and secure.

There is an increased risk of damaging the mobile phone or misplacing wallets amid all the fun and frolic. However, one can easily cover such risks with Bajaj Finserv Pocket Insurance and Subscription plans. Let’s dive into the details.

Protect mobile phones from accidental liquid damage during Holi

There is a high chance of damage or loss of smartphones during Holi. The use of water and colours during Holi celebrations make mobile phones prone to accidental liquid damage. It can damage the mobile screen as well as impair the internal components. Repairing a phone or replacing damaged parts can be pretty expensive. With a Mobile Protection Plan from Bajaj Finserv, one can easily cover the expenses incurred due to damage or loss of smartphones.

There are two types of Mobile Protection Plans one can choose from to cover against any liquid or physical damages:

– CPP Mobile Protect

CPP Mobile Protect provides coverage for expenses incurred due to accidental damage caused to the entire device. It also covers costs incurred due to any damage to the mobile screen. In addition, the CPP Mobile Protect provides coverage for damages due to water or fluid spillage, which is highly likely to happen during Holi. The membership fees starts from Rs. 1,215.

– CPP Fonesafe Lite

Apart from accidental liquid damage, smartphones are also prone to physical damage during Holi. Reports suggest that over 70% of phone repairs are related to mobile screen damage. The CPP Fonesafe Lite covers the repair or replacement costs if the mobile phone screen is damaged.

Notably, for both these plans, one can raise a maximum of two claims in one membership year. The maximum coverage on each claim of CPP Mobile Protect and CPP Fonsafe Lite is 100% and 50% of the smartphone’s value. The membership fee of this plan will vary depending on the price of the insured smartphone. The mobile phone has to be within the owner’s custody at the time of damage to be eligible for the plan benefits. These plans will be ideal for covering any expense incurred due to damage or loss caused during Holi celebrations. The membership fees start at just Rs. 649.

Additional benefits of mobile phone protection policies

Here are some of the add-on benefits of the Mobile Protection Plan.

1. F-Secure security

2. Gaana Plus subscription

3. Free ZEE5 subscription, worth Rs. 999 for one year

Secure wallet from theft or loss in the Holi crowd

Holi celebrations usually take place in groups. With crowds around, one can easily lose or misplace their wallet amid the festivities and celebrations. Wallet loss or theft can expose one to debit or credit card fraud and leave one stranded without cash. With Wallet Care, individuals can secure themselves financially from such losses.

Take a look at the features of the plan:

– High coverage for a nominal premium

Get coverage of Rs. 2 lakh for a premium of just Rs. 699. There’s a promo code available with this plan, especially for the festival of Holi, offering a discount of Rs. 200. Apply the HOLI200 code and buy Wallet Care plan at just Rs. 499. The offer is valid till March 18, 2022.

– PAN replacement

Individuals can avail of free-of-charge assistance to replace the lost PAN card.

– 24×7 card blocking

Customers can block all their credit and debit cards with a single phone call.

– Complimentary fraud protection

Get Rs. 2 lakh coverage against card-related frauds. Additionally, one also gets coverage of up to Rs. 1 lakh for other card-related fraud transactions.

– Emergency travel assistance

Customers who get stranded due to loss or theft of wallets can get assistance of up to Rs. 1 lakh abroad and up to Rs. 50,000 in India.

In addition to Wallet Care and Mobile Protection, Bajaj Finserv offers over 480 Pocket Insurance and Subscription plans with membership fees/premiums starting at just Rs. 19. These are small-ticket insurance plans that financially cover you against daily menaces. Applying for these insurance plans is easy, hassle-free and completely automated.

So, secure all personal belongings with a Pocket Insurance and Subscription plan to ensure the worry of loss or damage do not come in the way of celebrations and fun this Holi.

Disclaimer: This content is distributed by Bajaj Finserv. No HT journalist is involved in creation of this content. 

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