Bajaj Finserv in no mood to compromise, rallies over 5 per cent

A part of Bajaj Holding and Investment Limited, Bajaj Finserv on June 29 has rallied over 5 per cent. The company is in talks to buy out the stake of its joint venture partner Allianz SE in its insurance businesses. 

The shares as at 2.43 pm, are trading at Rs 2300. The shares in the last 5 days have gained by more than 14 per cent. In the last 6 months the shares have gained by more than 20 per cent. The shares' 52 week High/Low stand at Rs 2386/2307.The only reason for such a hike in the share prices is the prospective valuation of the target company which is Allianz. On the other hand, if Bajaj Finserv buys out Allianz, it gives the company some scope to bring in a new strategic investor or two, by offering up to 49 per cent stake in both the insurance units.

Bajaj Finserv has posted consolidated net profit of Rs 517.95 crore for the fourth quarter ended March 31, 2016 compared to Rs 707.12 crore in the corresponding quarter a year ago. For FY16, Bajaj Finserv has posted consolidated net profit of Rs 1,863 crores as against Rs 1,690 crore in FY15, showing a growth of 10 per cent. The net profit is up 36 per cent for Bajaj Finance to Rs 350 crore for Q4 of FY16 compared to a year ago. Total income is up 35 per cent to Rs 1,957 crore in Q4 on a year-on-year basis. Capital adequacy ratio stands at 19.61 per cent as on March 31, 2016.

Bajaj Finserv Ltd., is a Indian company engaged in business of life insurance, general insurance and consumer finance businesses. The company’s operating segment consist of general insurance, life Insurance, investment and others, retail financing.