Update: This stock really went up & became a Multibagger. Since the Valuation change it is No Longer a Multibagger in our view. You can check other stocks from our latest Multibaggers pack.
https://futurecaps.com/tag/multibagger/
Bajaj Finance Ltd. is a great stock which delivered more than 40 times returns in last 13 years. We can check whether it has Ampere ahead based on our Intrinsic Valuations.
Bajaj Finserv Limited, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company focused on lending, asset management, wealth management and insurance
Website: http://www.bajajautofinance.com/
Brief: Bajaj Finance Limited is a financial services company that operates branches in India, which provide an assortment of financial services.
| History of Consistently Increasing Sales, Earnings & Cash Flow |  |
| Durable Competitive Advantage | |
| Future Growth Drivers | |
| Conservative Debt (long term debt < 3*Net Profit) |  |
| Return on Equity must be Above Average | |
| Low CAPEX required to maintain current operations | |
| Management is holding / buying the stock | |
| Price is Under Valued (< intrinsic value) | |
| Stock Price is consolidating | |
Intrinsic Value
Current Market Price
1378 (CMP < Intrinsic Value, Very Good)
EPS Growth Rate
40% (Very High, Very Good)
ROE
24% (Above Average, Good)
Current Liabilities
1694 Crore (Raises a concern as it is little above 3 times latest net profit)
Stock Price Consolidation
The stock price is in the up-move as it is a Declared Blue Chip Multibagger. But, considering PE around 12, Book Value Ration just 0.5, I see it as a Good Price to buy & add on declines.
Expected Returns
Taking average EPS Growth as 30% per year, PE Ratio @ 20, we can expect 20 Times returns in 10 years.
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