Bajaj Finance among top 10 on BSE

Newsmantra — Mon, 17 Feb 2020 05:52:12 +0000

Bajaj Finance Ltd on Monday replaced State Bank of India to become India’s tenth most-valued firm by market capitalisation on the BSE.

According to the BSE, Bajaj Finance’s market capitalization stood at ₹2.87 trillion, with its shares trading at ₹4,773.85 on the BSE. The finance company’s shares have risen nearly 12% so far this year.

State Bank of India has a market cap of ₹2.81 trillion. Currently, Reliance Industries Ltd is the country’s most valued company with a market cap of ₹9.48 trillion, followed by Tata Consultancy Services Ltd ( ₹8.26 trillion) and HDFC Bank Ltd ( ₹6.73 trillion).

Hindustan Unilever Ltd is number four ( ₹4.95 trillion), followed by HDFC Ltd ( ₹4.12 trillion),Infosys Ltd( ₹3.36 trillion), ICICI Bank Ltd ( ₹3.50 trillion), Kotak Mahindra Bank Ltd ( ₹3.23 trillion), and Bharti Airtel Ltd ( ₹3.07 trillion).

Despite the slowdown in consumer spending, Bajaj Finance has reported strong earnings consistently and analysts said this is a clear indication of the company’s resilient business model.

Analysts gave a thumbs-up to the finance company’s portfolio granularity strategy across products and geographic locations and its capacity to absorb higher provisions. They believe the firm will continue on its high double-digit growth trajectory.

“Overall, we remain optimistic about BFL’s growth prospects on both topline and earnings front supported by a wide and strong customer franchise (40.38 mn customer base; 65-70% of new loans generated from existing customers), unique market positioning in India with an expanding retail franchise and distribution reach, a well capitalized balance sheet, and sound ROE profile (>20%)” said KR Choksey in a report.

SBI stock has fallen nearly 4% in the last two sessions on concerns over its asset quality after the Supreme Court rejected Vodafone Idea and Bharti Airtel’s plea seeking to negotiate payment schedule in AGR case. SBI has around ₹11,200 crore exposure to Vodafone Idea. So far this year, the stock has declined nearly 5.3%.

Investor sentiment was also hit after recent December quarter earnings of SBI showed a sharp rise in slippages. The lender reported slippages of ₹16,525 crore versus ₹8,800 crore in the second quarter led by non-performing asset recognition of housing finance account. Corporate slippage came in higher at ₹9,467 crore against ₹3,239 crore quarter on quarter.

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Birla Says Vodafone Idea may have To Shut

Newsmantra — Fri, 06 Dec 2019 09:45:26 +0000

After Bajaj Auto Chairman Rahul Bajaj, now another big businessmen has spoken openly about the Industrial Crisis. Vodafone India chairmen Kumar Mangalam Birla has said that if there is no relief, Vodafone may force to close its business here .

Two days ago, Rahul Bajaj had put a question in front of Home Minister Amit Shah and said that people are nervous about speaking. They feel that there will be no hearing in the government.

Vodafone Idea Limited Chairman Kumar Mangalam Birla on Friday said the company would have to shut shop if no relief is given to it in the wake of the Supreme Court (SC) judgement of 24 October that asked companies like his to pay dues of up to ₹92,000 crores to department of telecommunications (DoT) in three months.

Birla was speaking at the Hindustan Times Leadership Summit here.

“We will shut shop if we don’t get relief,” he said as he went on to say that he couldn’t call his telecom venture a failure.

Birla’s comments were quick to send Vodafone Idea shares tumbling in Friday’s trade, slipping 8.5% on the BSE to ₹6.69. The shares have trebled in less than six months from their 52-week low of ₹2.61. At the same time, the company faces an uncertain future.

Vodafone Idea owes the DoT an ₹40,000 crore while it has a cash balance of half of that. The SC order came in a 14-year-long case which had the DoT claiming that telecom companies had under reported their revenues and thus paid lower spectrum charges and other levies. DoT said that their revenues included income from dividends given by subsidiaries and sale of handsets bundled with services besides other sources. This was unsuccessfully contested by the telecom companies.

The DoT has since already asked the company to do their calculations in anticipation of the payment. Vodafone rival, Bharti Airtel Ltd, which owes DoT ₹21,682 crore in licence fee and another ₹13,904.01 crore as spectrum usage charges, plans to raise up to $3 billion to fund its payments. It too isn’t in the best of health but its future isn’t as bleak as Vodafone’s looks.

The companies have been expecting a relief from the government but none has come so far. A proposed two-year moratorium on dues may not help much.

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Bajaj Finance among top 10 on BSE

Birla Says Vodafone Idea may have To Shut