Bajaj Housing Finance, Ola Electric trading at crazy valuations that can’t be justified: Sandip Sabharwal
Sandip Sabharwal, asksandipsabharwal.com, says the price at which Bajaj Housing Finance is trading is crazy and there is no way one can justify these valuations when large, established, diversified financials are trading at half, one-third, or maybe 25% of the valuation of this company. Like with many other IPOs, this is just frenzied trading in a limited-float stock. Sabharwal says there’s a similar frenzy in Ola Electric, which is losing market share every month, it is giving forecasts based on them either maintaining or improving market share, which is not going to happen.
FOMO is setting in over the Bajaj Housing Finance IPO. The stock for a second consecutive day ended up in the green. But what is the message out there for people who want to participate right now? Should they be sitting on the sidelines, waiting for the frenzy to be over?
Sandip Sabharwal: Financials space has many companies that do not have a different business model from Bajaj Housing Finance. It is not a unique space, it is not like some new technology company or some different businesses that have listed which you cannot value. This company can be easily valued. The price at which it is trading is crazy and there is no way one can justify these valuations when large, established, diversified financials are trading at half, one-third or maybe 25% of the valuation of this company. So, like with many other IPOs, this is just frenzied trading in a limited-float stock.
Is there a frenzy on Ola Electric as well? Now the brokerage houses are
