18 Oct The Leading NBFC Player Bajaj Finance Limited has given 69+Lakh Rupees on Rs. 4050

Bajaj Finance Ltd. is a NBFC (Non-Banking Financial Company). The company is engaged in the business of lending and accepting deposits. BFL has a diversified lending portfolio across retail, small and medium enterprises and commercial customers with a good presence in urban and rural India. It also accepts public and corporate deposits and offers variety of financial services products to its clients.

Initially, the company was incorporated as Bajaj Auto Finance Limited on March 25, 1987-A NBFC, mainly focused to provide two or three wheeler finance. After 11 years, in 2008 the company was listed on BSE and NSE of India. The company’s name was changed from Bajaj Auto Finance Limited to Bajaj Finance Limited in 2008.

With the highest credit rating of FAAA/Stable for any NBFC in India, Bajaj Finance currently serves

over 50 million customers. Bajaj Finance has been in the market for over 35 years with an established presence across 3,685 locations and 150,000 delivery centers.

BFL is a deposit taking NBFC headquartered in Pune. 88.11 million Customer base makes it one of the biggest NBFC in India. BFL hold assets under management worth ₹354,192 crore (as of June 2024).

Bajaj Finance Ltd. also accepts public and corporate deposits. The company investments include fixed deposits and mutual funds. The subsidiaries of BFL are  Bajaj Housing Finance and Bajaj Financial Securities Ltd.

The market capitalization of BFL is Rs. 4.27 Lakh Crore (as of October, 2024).  ROCE 11.9% and ROE 22.1%.  Promoter Holding (54.70%), FIIS (21.08%) and DIIS (14.23%). The business and profit of the BFL company has been growing YOY.

Bajaj Finance Ltd. made many investors crorepati. The tremendous returns on investment have strengthened the confidence of investors. So within 16 years, Bajaj Finance Ltd. has performed outstandingly.

Example: Name of Person is Tilak. Tilak buys 100 shares of Bajaj Finance Ltd.@ 40.50/- per share in 2008.

2008  40.50/-  = 4050/-

2016  1:1 = 200 shares

2016  10   2   = 1000 shares

1000*6957 (on 16.10.2024) = 69,57,000

Now value of the total investment is Rs. 69,57,000

(Dividend is not included yet).

Total Growth: 6957000/4050= 1717X

Per year growth: 1717/16= 107X every year

Some people say, invest in fundamentally strong stocks and forget for 15-20 years. Some says vigil watch your investment time to time. You have good understanding to pick out stock if not working for long time.

Fundamentally strong stocks mostly uplift your returns in portfolio. I also say that invest in strong stocks whose business and base are amazing. But before investing, take a good look at the stock and analyze it.

Why expert says that invest and forget. The reason is psychology of a man. A man is greedy. If he sees good returns, he can sell the stock immediately. But the stock may have good potential to earn millions in the future. Some stocks are slow in the initial years but can give huge returns in the future due to their business potential.

For e.g. EV and energy stocks were not in the news 3-4 years ago. But these stocks have given big returns in 2023 and 2024. Trend is your friend. AI and semiconductor stocks have same story.

I held 100 shares of Moschip Company for 1 year. My buying price was 95/-. I immediately sold those stocks when I got 115-120 Rs. per share after 1 year. But I did not check that stock was in news now. Stock touched its high Rs.326.80. As the company is engaged in semiconductor business; it may grow more and more in future.

I always prefer investing for long term than trading in short term. It gives you peace of mind. But invest daily, weekly or monthly is your choice. But start investing from your early age for e.g. your age is 20 years old. This is perfect time. You can invest little from your pocket money. You can earn big within 10-15 years.

Warren Buffet is living example of long term investing. He had earned billions from long term investment. He looked for companies that were working in the forever consumer business. He invested good part of his money in The Coca Cola Company.  He was sure that people loved drinking this soft drink. The company grew, his invested money also increased.

This defense stock turned an investment of Rs. 9500 to 2.98 crores in just 10 years

Disclaimer: You may consider buying these stocks; but please advising your financial advisor before thinking to buy. The article is based on our personal views and information from trusted sources. We are not registered with SEBI.