09 Jul , 2021 By : Kanchan Joshi
Mumbai: Bajaj Finserv Ltd on Friday hit Rs2 trillion in market capitalization for the first time after its stock touched a record high in today's trade.
The stock advanced over 4% to touch an all-time high of Rs12,833.55 on the BSE. The scrip has climbed in the last four out of five sessions and gained nearly 43% so far this year.
Analysts said the stock surged amid expectations of better earnings after a recent report said that private insurers have done exceedingly well in getting their business back on track by adapting to the changing needs of customers.
In June, the private life insurance companies collected a new business premium of Rs8,213.19 crore, up 33.94% on-year and 32.23% over June 2019 (pre-pandemic) period, the report added.
According to ICICI Direct, the company's June quarter is expected to remain steady at Rs13846 crore, led by a pickup in all business -- lending life, general insurance, though absence of elevated investment gains in the first quarter may keep optical revenue stable.
Finance business may see a 7% year-on-year increase in topline at Rs7,103 crore led by traction in assets under management. Focus on individual regular business and improvement in renewals would aid life insurance premium growth at 50% year-on-year while healthy auto volumes and health insurance are expected to support general insurance business with premium growth at 9% year on year.
"However, higher provision in lending business, absence of elevated investment gains in Q1FY21 are expected to keep consolidated earnings at Rs1043 crore, down 14% YoY. QoQ, it may see a revival in all businesses with marginal improvement in profitability," ICICI Direct said in an 8 July report.
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