Bajaj zooms ahead on D-Street; Ambani follows

NEW DELHI: As benchmark equity indices hit fresh all-time highs, stocks of Bajaj group have emerged top wealth creators, with a 33.4 per cent jump in the combined market value so far this year. They beat Ambani, Adani and Tata groups to claim the crown.Investors made money with both hands in five Bajaj group stocks that rose 17-53 per cent in the first 10 months of 2019. However, six other group stocks fell up to 14-52 per cent in the same period. Six Adani group stocks saw a 19.27 per cent rise in the combined market value. All of them have gained so far this year.In value terms, two of Mukesh Ambani group stocks – Reliance Industries and RIIL – added Rs 2.19 lakh crore to increase combine market-cap to Rs 9.30 lakh crore, up 30 per cent from Rs 7.11 lakh crore at the end of 2018. On Wednesday, RIL became the sixth largest energy firm globally by market cap.Tata group’s 27 stocks were worth Rs 11.83 lakh crore today, having added Rs 1.34 lakh crore to investor wealth so far this year, representing a 12.77 per cent expansion.Nine Aditya Birla group stocks saw Rs 33,042 crore wealth erosion. Anil Ambani-led ADAG group also saw Rs 15,000 crore value erosion.On Thursday, Sensex was just 100 points shy off its record high level of 40,312 while NSE barometer Nifty50 was 150 points away from its record high of 12,103.Select Bajaj group stocks shineIn the case of Bajaj group, shares of Bajaj Finance have surged 54 per cent this year, followed by a 46 per cent jump in Maharashtra Scooters, 26 per cent rise in Bajaj Finserv, 25 per cent gain in Bajaj Holdings and 17 per cent rise in Bajaj Auto.Bajaj Auto, in fact, is among a handful of auto stocks that has yielded positive returns globally this year. Both Bajaj Finance and Bajaj Finserv have been reporting strong numbers for past few quarters. Bajaj Finance’s Q2 profit grew 63 per cent while that of Finserv 71 per cent.“Bajaj Finance can definitely give a 10 per cent return, if you are not expecting it to double in four-five years,” said Siddhartha Khemka of MOSL. In the case of Bajaj Finserv, Hemang Jani of Sharekhan said: "Within insurance, we like Bajaj Finserv because it has both life and general insurance businesses. Besides, compared with some of the other listed entities, it is quoting at a discount of about 16-30 per cent."Mukund Engineers, Mukand, Bajaj Consumer Care, Bajaj Hindustan Sugar, Bajaj Electricals and Hercules Hoists are the other of group stocks that are down 14-52 per cent year to date.Aditya Birla, ADAG stocks dropOut of the nine listed Aditya Birla group stocks, six eroded Rs 33,000 crore worth of investor wealth this year. Vodafone Idea alone has lost Rs 21,870 crore in value. Hindalco, Grasim Industries and Aditya Birla Money have erased another Rs 20,000 crore. UltraTech Cement added Rs 9,050 crore to the group’s value.Six ADAG stocks saw 40 per cent erosion in market value. Their combined market value now stands at Rs 22,400 crore compared with Rs 37,880 crore at the end of December 2018. Shares of RNAM have jumped 103 per cent (or by Rs 10,000 crore in value) during the same period. Nippon Life Insurance acquired 75 per cent stake in RNAM from Reliance Capital for around Rs 6,000 crore.Reliance Capital, RCom, Reliance Home, Reliance Infra and Reliance Power lost 88-95 per cent of their value in 2019 so far.Adani stocks deliver 19% returnIn case of Gautam Adani stocks, except for Adani Ports, all other stocks have performed pretty well. Adani Green surged 113 per cent, followed by Adani Gas (47 per cent), Adani Transmission (32.65 per cent) and Adani Power (30 per cent). Adani Ports rose just 1 per cent for the year.TCS, Titan, Trent, Voltas and TGBL contributed the bulk of increase in Tata group market-cap, as 17 of the 27 group stocks are down this year. TCS alone added Rs 1.13 lakh crore to the group’s market-cap. Titan added Rs 35,773 crore to its market value. Rest three added a combined Rs 16,720 crore.RIL a $200 billion company in makingWhile shares of RIIL have fallen 20 per cent this calendar, those of RIL are up 30.86 per cent. A few brokerages have projected RIL to become a $200-220 billion entity in next 4-5 years. Anand Rathi, Centrum Capital, Sharekhan and IIFL are among the brokerages that have positive views on the stock from a one-year perspective.

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