Why Bajaj Holdings Share Price is Falling

Indian benchmark indices have been hitting record highs in the past eight-sessions despite weak global cues.

However, amid this bullish sentiment, shares of various companies have fallen. Bajaj Holdings and Investments is one of them.

The stock of the company has fallen more than 5% in the last week.

So, what is the reason behind the fall? And what does the heart term outlook of the company look like?

Profit booking

On 30 November 2022 Integrated Core Strategies sold 0.5% of the shares of the company in a block deal. This led to a sharp fall in the stock intraday.

The stock of Bajaj Holdings has gained 38.8% since July 2022. Taking these gains into the account, it is possible that investors have booked profits due to the sky-high valuations of the firm.

Shares of the company are currently trading at higher valuations as compared to the industry average. The Price to Earnings (PE) multiple of the company currently stands at 16x, while the average industry PE multiple stands at 6.3x. This makes the shares of the company overvalued.

The PBV (price to book value) ratio of the company also is overvalued at 3.6x. Investors usually prefer a PB ratio below 3.

Robust financials to drive growth

While shares of Bajaj Holdings have fallen in the last month, the stock is up more than 20% in the last six months. This can be attributed to the robust quarterly results reported by the company.

For the September 2022 quarter, the company reported a 68.8% YoY rise in net profit at Rs 1.4 bn. This was on the back of a 27.6% YoY increase in net sales.

It also announced a dividend of Rs 110 per share.

For the financial year 2023, the company is planning to ram up the revenue of the firm by increasing the investment quality of the firm.

Apart from this, the shares of Bajaj Holdings were recently included as part of MSCI's global standard index.

How Bajaj Holdings shares have performed lately

Over the last week, the company's shares are trading lower by 2.16%. The shares of the company have edged lower by 5.4% in a month.

So far, in 2022, the stock is trading higher by 18.6%. Over the last year, shares of the company have soared by 18.7%.

The company touched its 52-week high of Rs 7,378 on 15 September 2022 and its 52-week low of Rs 4,294 on 20 June 2022.

About Bajaj Holdings

Bajaj Holdings and Investments, formerly known as Bajaj Auto, is an Indian- based holding and Investment company.

The company operates as a primary investment firm, focusing on new business prospects. It holds strategic stakes of 31.5% in Bajaj Auto 39.2% in Bajaj Finserv Ltd.

It is the flagship company of the Bajaj Group. Its primary goal is to generate income through dividends, interest, and gains from retained investments.

It is largely dependent on the equity and debt markets for its income.

To know more about the company, check out Bajaj Holdings company fact sheet and quarterly results

You can also compare Bajaj Holdings and Investment with its peers.

Bajaj Holdings vs Aditya Birla Capital

Bajaj Holdings vs Edelweiss Financial

Bajaj Holdings vs CDSL

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...