Bajaj Finance continues to remain a long-term core portfolio stock: Gurmeet Chadha

economictimes.indiatimes.com:

«I have been an investor luckily in Bajaj Finance since 2014-15 and I have never booked profits in the last eight-nine years and it has rewarded. It is a high beta stock because it always commands of premium valuation so whenever there is any stress in the economy, whenever the growth is slightly subpar, there is a reaction in the market,» says Gurmeet Chadha, Complete Circle ConsultantsAnd that is specifically with respect to Bajaj Finance, you track that one closely. Are you tempted to book some profits or this is just start of another bull run on that one?I have been an investor luckily in Bajaj Finance since 2014-15 and I have never booked profits in the last eight-nine years and it has rewarded.

It is a high beta stock because it always commands of premium valuation so whenever there is any stress in the economy, whenever the growth is slightly subpar, there is a reaction in the market. The only concern the market had was that at 2.5 lakh crore AUM can you continue to add three-four billion customers every quarter? Can you still grow at 30%? I think they are trying to answer that and I have been saying this for a while in India what is happening is that the credit creation is reaching to tier II, tier III towns at a much faster pace and this growth in credit is more secular but you have to be mindful of valuations and players like Chola, Bajaj, even to a certain extent, maybe Poonawalla you should do a combination of price to book and price to earnings because these are more consumer, they are play on more consumer spending.

So, if you see Bajaj, for example, it has got 3,000 odd crores a quarter kind of a profit run rate now, if you take last quarter, which is about 12,000-13,000 crore PAT. Now, if you give let us