Two flagship companies from the Bajaj stable – an INR 2,02,299 crores big Bajaj Finserv Limited and an INR 3,45,525 crores big Bajaj Finance Limited, commonly referred to as Bajaj twins have seen a consistent decline in the recent past.
Although there’s no doubt that these stocks are also market darlings, their performance, especially from the last quarter of 2022 has been disappointing. However, now it seems like that selling spree in these counters is getting over and they are gearing up to pare some of the losses.
Bajaj Finance Limited
Bajaj Finance Ltd (NS:) is a non-banking finance company (NBFC) that is engaged in the lending and allied services. The company displayed a good performance in Q3 FY23, growing its asset under management (AUM) by 27% YoY to INR 2,30,802 crores while net profit jumped 40% to INR 2,973 crores in the same period.
Image Description: Daily chart of Bajaj Finance with volume bars at the bottom
Image Source: Investing.com
The share price of Bajaj Finance rallied over 4.5% the next day after the result, depicting the market’s enthusiasm after seeing these numbers. However, Adani Group’s rout played a spoiler to the party which led the stock to fall to a new low of 2023, at INR 5,645 on 2 February 2023 but a follow-up rally of 5.19% to INR 6,014.25 on Friday has again revived hopes from this counter. The stock is now looking to break an immediate resistance of INR 6,070, above which a level of INR 6,400 could soon come on the screen.
Bajaj Finserv Limited
Bajaj Finserv Ltd (NS:) is a holding company whose subsidiaries are engaged in the business of financial services, insurance and wealth management. Just like its other twin, Bajaj Finserv also posted good Q3 FY23 earnings, reporting a revenue jump of 23% YoY to INR 21,755 crores while profit after tax soared 42% to INR 1,782 crores.
Image Description: Daily chart of Bajaj Finserv with volume bars at the bottom
Image Source: Investing.com
The share price of Bajaj Finserv tanked 13.3% in the last one month while the fall from a high of INR 1,817.9, marked in November 2022 is a decent 26.42%. The stock jumped 5.15% to INR 1,337.45 on Friday after making a bullish divergence on the daily chart. As soon as the stock crosses the hurdle of INR 1,360, it could start paring some of the recent losses and might rally to INR 1,500 thereafter.