Bajaj Finance’s strong digital move has made it bigger than home lending giant HDFC

• Bajaj Finance’s market capitalization exceeds that of HDFC, one of the largest real estate finance companies.
• With this, Bajaj Finance is now the eighth largest company on the exchanges by market capitalization.
• The market capitalization of NBFC became ₹4.18 lakh crore higher than that of HDFC at ₹4.17 lakh crore.

Pune-based financial services company, Bajaj Finance, has now become the eighth largest company in the Indian market by market capitalization, surpassing even the major housing finance company, Housing Development Finance Corporation.

Bajaj Finance is making every effort to develop a digital community for its lending and credit activities. It has now consolidated all of its offers into one app and has also removed more physical credit cards. The app allows customers to get loans, repay, get EMI cards, track their FDs, home insurance, investments, and more.

For its future growth, the company expects investments from global giants for capital and technology partnerships. Bajaj Finance is also considering a banking license with its huge loan portfolio.

“We expect digital transformation to start paying off in terms of better cross-selling starting in the second half of FY23,” said a report from Bernstein Research.

In fact, analysts believe that the depth of offerings on the BAF app is on par with or even better than the apps of major private sector banks. This provides Bajaj Finance with new leverage for customer acquisition, engagement and cross-selling.

Bajaj Finance’s market capitalization became ₹4.18 lakh crore higher than that of HDFC at ₹4.17 lakh crore.

Shares of Bajaj Finance jumped more than 2% today as market momentum picked up slightly after a stressful day on February 14.

India’s Ten Largest Listed Companies

Later, Bajaj Finance shares fell slightly and are at the same level as HDFC.

On the other hand, the real estate finance company HDFC is also doing well with strong demand but with low mortgage rates over several years. Moreover, the shares of other listed companies in the group have been underperforming the market for a long time.

Shares of the company will rise further as the core business of home lending has potential and is on track to transform into an adaptable new-era fin-tech, analysts said. from ICICI direct. The brokerage firm expects the price to rise by 37% to ₹9,500 per share.

High yield ratios, superior asset quality, high growth rates, which rebounded very quickly from shutdowns and digital initiatives will keep Bajaj Finance’s multiples well above best-in-class banks (like HDFC Bank, Kotak Mahindra) and will be on par with companies like SBI Cards, Axis Capital analysts said.

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