Bajaj Group Joins ₹10 Lakh Crore Market Cap Club as Fifth Conglomerate

Bajaj Group has breached the ₹10 lakh crore mark in market capitalization, making it the fifth business house to achieve this feat. Joining the ranks of industry giants like Tata, Reliance Industries, HDFC Bank, and the Adani Group, the Pune-based conglomerate has seen a remarkable surge in valuation, largely propelled by key subsidiaries.

Bajaj Auto Drives Growth

Bajaj Auto emerged as the primary contributor to the group's soaring valuation, adding nearly ₹75,000 crore this year. The launch of the Triumph Bike earlier in the year triggered a surge in Bajaj Auto's shares, propelling the company's market valuation to new heights. Bajaj Auto's market cap has increased 63% since April.

Looking ahead, Bajaj Auto anticipates further growth with the rollout of new products in collaboration with the British motorcycle brand Triumph. The company aims to achieve a monthly sales goal of 10,000 units for Bajaj Triumphs, with production and sales expected to rise to 18,000 units in the third quarter of the fiscal year.

Bajaj Finance's Strong Performance

Meanwhile, Bajaj Finance played a pivotal role in the group's success story, witnessing a market capitalization addition of about ₹60,000 crore. The robust financial performance in the first half of FY24, coupled with successful fundraising, fueled a surge in Bajaj Finance's shares. Despite challenges, the financial entity reported a remarkable 33% growth in assets under management (AUM), reaching ₹2.9 lakh crore in Q2FY24.

The combined strength of financial entities Bajaj Finance and Bajaj Finserv, which account for 73% of the group's valuation, underscores the diversified business model and resilience of the conglomerate.

Analysts express confidence in Bajaj Finance's future, citing its robust AUM growth, diverse business model, efficient execution, and seasoned leadership team. Despite intensifying competition, the company is expected to withstand challenges and manage asset quality risks in emerging ventures, such as microfinance.

All five listed companies under the late Rahul Bajaj Group have demonstrated varied performances. Bajaj Auto, under the leadership of CEO Rajiv Bajaj, witnessed the highest surge of over 72% this year, driven by ambitious plans and new product launches. Bajaj Finance and Bajaj Finserv, led by Sanjiv Bajaj, recorded 12% and 9% gains, while Bajaj Holdings and Investment and Maharashtra Scooters also showed 36% and 74% growth.

Top Business Houses in India

While the Bajaj Group's achievement is noteworthy, Tata Group continues to lead the league table with a staggering aggregate market capitalization of ₹26.4 lakh crore. Reliance Industries, HDFC Group, and the Adani Group follow suit with valuations of ₹16.6 lakh crore, ₹14.2 lakh crore, and ₹11.9 lakh crore, respectively.

Bajaj Finance faces challenges ahead due to rising competition in the financial services sector, from new entrants like Jio Financial Services and Reliance Industries. Analysts point out potential pressure on returns in both business-to-business (B2B) and business-to-consumer (B2C) segments.