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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532978 | NSE: BAJAJFINSV

Fundamental Analysis of Bajaj Finserv Ltd

About the Company - Bajaj Finserv Ltd

Bajaj Finserv Ltd. is a Public Limited Listed company incorporated on 30/04/2007 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65923PN2007PLC130075 and registration number is 130075. Currently Company is involved in the business activities of Trusts, funds and other financial vehicles. Company’s Total Operating Revenue is Rs. 623.83 Cr. and Equity Capital is Rs. 79.57 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Holding CompanyBajaj Auto Limited Complex, Pune Maharashtra 411035investors@bajajfinserv.in
http://www.bajajfinserv.in
Management
NamePosition Held
Mr. Sanjiv BajajChairman & Managing Director
Mrs. Radhika HaribhaktiDirector
Mr. Madhur BajajDirector
Mr. Rajiv BajajDirector
Mr. D J Balaji RaoDirector
Mr. Pramit JhaveriDirector
Dr. Naushad ForbesDirector
Mr. Anami N RoyDirector
Mr. Manish KejriwalDirector

Basic Stock Data of Bajaj Finserv Ltd

Last Updated: June 21, 2024, 12:15 pm

Market Cap 2,53,119 Cr.
Current Price 1,585
High / Low1,742/1,419
Stock P/E31.1
Book Value 378
Dividend Yield0.06 %
ROCE11.6 %
ROE15.3 %
Face Value 1.00
PEG Ratio1.71

Competitors of Bajaj Finserv Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Abans Holdings Ltd 2,250 Cr. 449463/25527.5 1860.00 %9.20 %9.30 % 2.00
Choice International Ltd 7,516 Cr. 377380/16658.3 31.70.00 %24.8 %23.2 % 10.0
Max India Ltd 1,285 Cr. 298304/116 1140.00 %7.92 %10.9 % 10.0
Bajaj Holdings & Investment Ltd 91,357 Cr. 8,2099,355/6,62812.6 4,8741.60 %13.1 %14.8 % 10.0
Industry Average25,602.00 Cr2,333.2524.601,301.430.40%13.76%14.55%8.00

Bajaj Finserv Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales15,95915,38713,94918,00817,58718,86215,88820,80321,75523,62523,28026,02329,038
Expenses10,79910,7469,86012,69611,78312,7699,57313,41613,92415,47013,93516,07318,601
Operating Profit5,1594,6414,0905,3125,8046,0936,3157,3877,8318,1549,3459,95010,438
OPM %32%30%29%30%33%32%40%36%36%35%40%38%36%
Other Income21003300002302
Interest2,2582,1472,1902,3822,4452,4812,5642,9613,2413,4364,0204,4494,777
Depreciation124135132138143149157168172181202209232
Profit before tax2,7792,3581,7672,7923,2493,4623,5944,2584,4194,5405,1255,2925,431
Tax %25%26%19%28%28%27%28%30%25%27%28%29%26%
Net Profit2,0821,7451,4331,9982,3492,5342,5782,9973,3003,3353,7093,7564,045
EPS in Rs8.116.155.237.057.898.468.239.7711.1911.1112.2012.0913.52

Last Updated: June 14, 2024, 6:18 pm

Bajaj Finserv Ltd Quarterly Chart

Bajaj Finserv Ltd Profit & Loss

Last Updated: June 1, 2024, 11:55 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,7158,0556,02311,33520,53324,50732,86242,60554,35160,59268,40682,072101,966
Expenses9204,1241,5315,82313,79515,79422,07427,56936,09440,95046,95152,20464,078
Operating Profit1,7943,9314,4915,5116,7398,71310,78815,03718,25819,64121,45529,86837,887
OPM %66%49%75%49%33%36%33%35%34%32%31%36%37%
Other Income1,19023800120-7817
Interest7441,2041,5622,2302,8773,7164,5316,6579,5009,2749,62912,38016,682
Depreciation142231385873160226457498563678824
Profit before tax2,2262,7082,9023,2513,8044,9256,0998,1558,3029,86211,27116,81120,389
Tax %15%18%24%26%27%30%32%34%28%25%26%27%
Net Profit1,8902,2142,1912,4092,7753,4504,1765,3745,9947,3678,31412,21014,846
EPS in Rs8.409.899.7110.6211.7114.2116.6520.2321.1728.0928.6340.2948.92
Dividend Payout %2%2%2%2%1%1%1%1%2%1%1%2%

Bajaj Finserv Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)17.14%-1.04%9.95%15.19%24.32%21.04%28.69%11.54%22.91%12.85%46.86%
Change in YoY Net Profit Growth (%)0.00%-18.18%10.99%5.24%9.13%-3.28%7.64%-17.15%11.37%-10.05%34.01%

Bajaj Finserv Ltd Growth

Compounded Sales Growth
10 Years:26%
5 Years:20%
3 Years:15%
TTM:32%
Compounded Profit Growth
10 Years:15%
5 Years:19%
3 Years:24%
TTM:30%
Stock Price CAGR
10 Years:35%
5 Years:16%
3 Years:18%
1 Year:21%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:13%
Last Year:15%

Last Updated: April 8, 2024, 3:04 pm

Bajaj Finserv Ltd Balance Sheet

Last Updated: June 1, 2024, 11:55 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital7280808080808080808080159159
Reserves5,0277,7229,23211,00913,51916,07120,40323,66031,22235,75040,16746,24850,713
Borrowings10,20112,99119,50726,31236,06248,28265,69599,754127,212128,461161,179212,265251,552
Other Liabilities44,15444,57845,56550,82754,29064,18175,33784,93492,791115,554131,987146,729166,899
Total Liabilities59,45465,37074,38388,228103,951128,614161,514208,428251,304279,845333,413405,401469,324
Fixed Assets8181,2081,2621,2611,2741,6451,7922,0973,2163,1823,5864,3364,858
CWIP1821311428664512911319173
Investments43,50643,25145,31451,36753,69862,65869,42881,67991,821113,654119,222136,176145,283
Other Assets15,11320,91027,80535,59848,96964,30690,266124,587156,223162,879210,493264,698319,110
Total Assets59,45465,37074,38388,228103,951128,614161,514208,428251,304279,845333,413405,401469,324

Bajaj Finserv Ltd Reserves and Borrowings Chart

Bajaj Finserv Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -3,849-6,922-9,807-10,731-9,795-10,922-19,580-27,076-23,3694,547-33,670-39,480
Cash from Investing Activity -8872,9533,7643,709-886151-922-6,903-9,948-3,6841,445-13,945
Cash from Financing Activity 3,8034,5926,5216,83911,60212,51319,59034,53534,4791,68732,32651,016
Net Cash Flow-933623478-1839211,742-9115551,1622,551101-2,409

Bajaj Finserv Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-9.00-9.00-15.00-21.00-30.00-40.00-55.00-84.00-109.00-109.00-140.00-183.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Bajaj Finserv Ltd Free Cash Flow Chart

Bajaj Finserv Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days361622171219191918171615
Inventory Days
Days Payable
Cash Conversion Cycle361622171219191918171615
Working Capital Days-3,859-1,204-1,338-603-243-169-675-537-417-490-493-444
ROCE %20%19%16%15%14%14%13%13%11%10%10%11%

Bajaj Finserv Ltd Financial Efficiency Indicators Chart

Bajaj Finserv Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters60.80%60.80%60.80%60.77%60.80%60.75%60.75%60.78%60.79%60.69%60.69%60.69%
FIIs9.55%8.92%8.78%8.50%7.38%7.48%7.81%7.03%7.17%7.66%7.91%8.42%
DIIs6.00%6.65%6.75%6.97%7.70%7.01%6.91%7.10%7.30%7.09%7.48%7.33%
Public23.49%23.50%23.55%23.65%24.03%24.60%24.39%24.95%24.66%24.31%23.70%23.38%
Others0.16%0.13%0.12%0.11%0.09%0.16%0.14%0.13%0.10%0.25%0.21%0.18%
No. of Shareholders1,76,2192,02,1882,27,9732,43,8532,99,3805,63,4326,31,4367,36,5966,91,2346,60,2955,85,2205,67,041

Bajaj Finserv Ltd Shareholding Pattern Chart

No. of Bajaj Finserv Ltd Shareholders

Bajaj Finserv Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF9,821,8390.931598.313,894,4242024-06-20152.2%
SBI S&P BSE Sensex ETF6,947,2821.081130.433,894,4242024-06-2078.39%
Axis ELSS Tax Saver Fund6,083,3542.95989.943,894,4242024-06-2056.21%
Axis Focused 25 Fund3,894,4244.57633.743,894,4242024-06-200%
Axis Bluechip Fund3,809,2161.9619.873,894,4242024-06-20-2.19%
UTI Nifty 50 ETF2,719,8730.93442.63,894,4242024-06-20-30.16%
UTI S&P BSE Sensex ETF2,396,3461.08389.923,894,4242024-06-20-38.47%
HDFC Balanced Advantage Fund - Regular Plan1,869,0000.39304.143,894,4242024-06-20-52.01%
Nippon India ETF Nifty 50 BeES1,159,7820.93188.733,894,4242024-06-20-70.22%
UTI Nifty 50 Index Fund873,7160.93142.183,894,4242024-06-20-77.56%

Bajaj Finserv Ltd ROCE Trend

Bajaj Finserv Ltd EPS Trend

Bajaj Finserv Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.005.005.005.005.00
Basic EPS (Rs.)40.30286.30280.90211.70202.30
Diluted EPS (Rs.)40.00286.30280.90211.70202.30
Cash EPS (Rs.)80.91557.79494.28405.29351.80
Book Value[Excl.RevalReserv]/Share (Rs.)487.244167.393663.063196.022296.58
Book Value[Incl.RevalReserv]/Share (Rs.)487.244167.393663.063196.022296.58
Revenue From Operations / Share (Rs.)515.334298.483807.413415.022677.14
PBDIT / Share (Rs.)186.421340.451225.481137.13937.51
PBIT / Share (Rs.)182.161305.091194.161108.43923.30
PBT / Share (Rs.)105.55708.24619.74521.62512.34
Net Profit / Share (Rs.)76.66522.43462.96376.58337.60
NP After MI And SOA / Share (Rs.)40.29286.34280.91211.71202.28
PBDIT Margin (%)36.1731.1832.1833.2935.01
PBIT Margin (%)35.3430.3631.3632.4534.48
PBT Margin (%)20.4816.4716.2715.2719.13
Net Profit Margin (%)14.8712.1512.1511.0212.61
NP After MI And SOA Margin (%)7.816.667.376.197.55
Return on Networth / Equity (%)13.8211.3212.4710.7613.55
Return on Capital Employeed (%)13.7011.7813.3514.0214.52
Return On Assets (%)1.581.361.591.341.54
Long Term Debt / Equity (X)2.802.642.252.302.62
Total Debt / Equity (X)4.563.993.574.044.20
Asset Turnover Ratio (%)0.010.000.000.010.01
Current Ratio (X)2.062.041.951.921.87
Quick Ratio (X)2.062.041.951.921.87
Dividend Payout Ratio (NP) (%)0.991.040.003.540.86
Dividend Payout Ratio (CP) (%)0.890.930.003.110.80
Earning Retention Ratio (%)99.0198.960.0096.4699.14
Cash Earning Retention Ratio (%)99.1199.070.0096.8999.20
Interest Coverage Ratio (X)2.432.252.131.942.28
Interest Coverage Ratio (Post Tax) (X)2.001.881.811.641.82
Enterprise Value (Cr.)438933.70453552.41300819.87216682.58222935.26
EV / Net Operating Revenue (X)5.356.634.963.995.23
EV / EBITDA (X)14.7821.2615.4211.9714.94
MarketCap / Net Operating Revenue (X)2.463.972.541.342.63
Retention Ratios (%)99.0098.950.0096.4599.13
Price / BV (X)4.356.744.292.334.72
Price / Net Operating Revenue (X)2.463.972.541.342.63
EarningsYield0.030.010.020.040.02

Bajaj Finserv Ltd Profitability Ratios (%)

Bajaj Finserv Ltd Liquidity Ratios

Bajaj Finserv Ltd Liquidity Ratios (%)

Bajaj Finserv Ltd Interest Coverage Ratios (%)

Bajaj Finserv Ltd Valuation Ratios

Fair Value

Fair Value: 1,799.72

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 13.55% compared to the current price 1585

Intrinsic Value: 2,127.93

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 34.25% compared to the current price ₹1585

Last 5 Year EPS CAGR: 18.24%

*Investments are subject to market risks

Strength and Weakness of Bajaj Finserv Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -339.67, which is a positive sign.
  2. The company has shown consistent growth in sales (39.23 cr) and profit (7.23 cr) over the years.
  1. The stock has a low average ROCE of 13.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 18.83, which may not be favorable.
  3. The company has higher borrowings (92,267.15) compared to reserves (23,903.31), which may suggest financial risk.

Should I Buy Bajaj Finserv Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bajaj Finserv Ltd:
    1. Net Profit Margin: 14.87%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.70% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.82% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.00
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.06
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 31.1 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: 4.56
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

FAQ

What is the latest fair value of Bajaj Finserv Ltd?

The latest fair value of Bajaj Finserv Ltd is ₹1799.72.

What is the Market Cap of Bajaj Finserv Ltd?

The Market Cap of Bajaj Finserv Ltd is 2,53,119 Cr..

What is the current Stock Price of Bajaj Finserv Ltd as on 21 June 2024?

The current stock price of Bajaj Finserv Ltd as on 21 June 2024 is ₹1,585.

What is the High / Low of Bajaj Finserv Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bajaj Finserv Ltd stocks is 1,742/1,419.

What is the Stock P/E of Bajaj Finserv Ltd?

The Stock P/E of Bajaj Finserv Ltd is 31.1.

What is the Book Value of Bajaj Finserv Ltd?

The Book Value of Bajaj Finserv Ltd is 378.

What is the Dividend Yield of Bajaj Finserv Ltd?

The Dividend Yield of Bajaj Finserv Ltd is 0.06 %.

What is the ROCE of Bajaj Finserv Ltd?

The ROCE of Bajaj Finserv Ltd is 11.6 %.

What is the ROE of Bajaj Finserv Ltd?

The ROE of Bajaj Finserv Ltd is 15.3 %.

What is the Face Value of Bajaj Finserv Ltd?

The Face Value of Bajaj Finserv Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bajaj Finserv Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE