Market gung ho about Bajaj Finance business transformation: Mehraboon J Irani
Market expert Mehraboon J Irani The transformation which they are doing with their business, I think is another thing which the market is very gung ho about.
“A lot of people had questioned valuations of Bajaj Finance including me at some point. But somewhere I have accepted the fact that here is a management which nine out of 10 analysts on the Street will rate possibly as among the best in the country… very proactive. Now, if we start arguing that is that reason enough for the valuation, which is absolutely lofty, what is there for me to make money from? The point is that you are a company that understands most nuances as far as the finance sector goes,” he said.
“They don’t want to bank as of now, maybe one fine day they will do it also… This company has always been a front runner in all the segments in which it is. The market rates it highly and I would say that 20 percent of the premium valuation, which it is getting is mainly because of the way the management has communicated to the shareholders to stakeholders as well as to the analyst community,” he added.