Get Magazines for free

Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Sunday, June 21, 2009

Bajaj Finserv Ltd:-Future growth prospects and outlook

Scripscan:Bajaj Finserv Ltd
cmp:390
Traded in:Nse-bse

Story:Financial services provider Bajaj FinServ has presence in general insurance, life insurance and consumer finance business. The company's presence in the insurance business with a 74% stake each in Bajaj Allianz Life Insurance and Bajaj General Insurance. The insurance industry was confined to the public sector until 2000 in India. When the sector was open for private players, a deluge of new entrants entered the industry and insurance was at the forefront of the growth story in financial services industry. There are 18 private players in the life insurance space and 12 private players in the general insurance industry so that there is a significant competition in the market with proliferation of private players. On the top of it, the public sector players LIC, Oriental, New India and National Assurance have made significant base in the industry with several decades experience.Bajaj FinServ's general insurance business is running in profits, however, life insurance business is yet to break even. This is due to accounting regulations, which require expense recognition while maintaining reserve for estimated future liability. In simpler words, if an insured pays a premium of just Rs 10,000 on a sum assured of Rs 10,00,000, from the company's point of view, the income will just be the premium received, but the expense will be calculated on the sum assured of Rs 10,00,000. Hence, expenses are far higher than income and the company has to operate at losses, Due to this, it cannot be said that when the life insurance business of the company will break even. This is expected only when the renewal premiums are much more than new business premium.All kinds of finance business are impacted by the turmoil in financial and capital markets. To this extent, even Bajaj FinServ would be impacted in the short-run. However, the penetration of insurance products in the country is very low providing huge opportunities to companies like Bajaj FinServ. Moreover, the company has already built a vast distribution network and it seems that the company will emerge as one of the strongest players in the insurance space in a few years.A great buy at dips.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner