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Last Updated on: 07 July, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500034 | NSE: BAJFINANCE

Fundamental Analysis of Bajaj Finance Ltd

About the Company - Bajaj Finance Ltd

Bajaj Finance Ltd. is a Public Limited Listed company incorporated on 25/03/1987 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65910MH1987PLC042961 and registration number is 042961. Currently company belongs to the Industry of Finance & Investments. Company’s Total Operating Revenue is Rs. 27864.28 Cr. and Equity Capital is Rs. 120.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)Mumbai - Pune Road, Pune Maharashtra 411035investor.service@bajajfinserv.in
http://www.bajajfinserv.in/finance
Management
NamePosition Held
Mr. Sanjiv BajajChairman
Mr. Rajeev JainManaging Director
Mr. Anup SahaDeputy Managing Director
Dr. Naushad ForbesDirector
Mr. Anami RoyDirector
Mr. Pramit JhaveriDirector
Dr. Arindam BhattacharyaDirector
Ms. Radhika HaribhaktiDirector
Mr. Rajiv BajajDirector

Basic Stock Data of Bajaj Finance Ltd

Last Updated: July 6, 2024, 12:22 pm

Market Cap 4,41,840 Cr.
Current Price 7,138
High / Low8,192/6,188
Stock P/E30.6
Book Value 1,234
Dividend Yield0.50 %
ROCE11.9 %
ROE22.1 %
Face Value 2.00
PEG Ratio1.46

Competitors of Bajaj Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
5Paisa Capital Ltd 1,564 Cr. 501759/38528.7 1730.00 %13.4 %10.8 % 10.0
PTC India Financial Services Ltd 3,184 Cr. 49.668.0/18.619.8 39.52.02 %8.92 %6.45 % 10.0
Aroma Enterprises (India) Ltd 14.6 Cr. 30.030.0/30.0 3.650.00 %5.70 %% 10.0
Alps Motor Finance Ltd 3.86 Cr. 0.38/ 0.280.00 %22.9 %1,772 % 1.00
Mahindra & Mahindra Financial Services Ltd 37,129 Cr. 300336/23719.3 1612.10 %8.74 %10.0 % 2.00
Industry Average5,707.44 Cr641.0874.065,613.935.64%16.11%24.53%7.62

Bajaj Finance Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue6,6566,8516,7427,7318,5378,6269,2849,97010,78711,36312,49813,37814,161
Interest2,3632,1962,2542,3982,5352,5682,6452,9723,3513,5924,1034,5374,868
Expenses2,6622,7473,0353,2363,0402,6913,0263,1293,3083,3813,6943,9294,228
Financing Profit1,6321,9081,4542,0982,9623,3673,6133,8694,1294,3904,7024,9135,065
Financing Margin %25%28%22%27%35%39%39%39%38%39%38%37%36%
Other Income2411232425647
Depreciation8090899597104111121119134156159176
Profit before tax1,5551,8231,3662,0042,8683,2653,5033,7524,0124,2614,5514,7584,896
Tax %26%26%27%26%26%26%26%26%26%26%24%25%26%
Net Profit1,1461,3471,0021,4812,1252,4202,5962,7812,9733,1583,4373,5513,639
EPS in Rs19.0222.3516.6124.5435.2139.9642.8845.9349.1152.1656.7258.6058.88
Gross NPA %0.55%1.79%2.96%2.45%1.73%1.60%1.25%1.17%1.14%0.94%0.87%0.91%0.95%
Net NPA %0.19%0.75%1.46%1.10%0.78%0.68%0.51%0.44%0.41%0.34%0.31%0.31%0.37%

Last Updated: July 7, 2024, 6:18 am

Bajaj Finance Ltd Quarterly Chart

Bajaj Finance Ltd Profit & Loss

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue5,3927,2999,97012,74618,48726,37426,67331,64141,39848,023
Interest2,2742,9593,8534,6966,7239,6089,5199,85512,70115,582
Expenses1,7522,3543,2504,1155,4549,15910,83911,88012,68014,308
Financing Profit1,3671,9862,8673,9356,3107,6086,3149,90616,01818,133
Financing Margin %25%27%29%31%34%29%24%31%39%38%
Other Income263522101393-17-416
Depreciation365671102144295325385485568
Profit before tax1,3571,9652,8173,8436,1797,3225,9929,50415,52817,582
Tax %34%35%35%35%35%28%26%26%26%
Net Profit8981,2791,8362,4963,9955,2644,4207,02811,50813,118
EPS in Rs17.9023.7433.4043.1969.1287.4873.35116.09190.07216.59
Dividend Payout %10%10%11%9%9%11%14%17%16%

Bajaj Finance Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)42.43%43.55%35.95%60.06%31.76%-16.03%59.00%63.75%
Change in YoY Net Profit Growth (%)0.00%1.12%-7.60%24.11%-28.29%-47.80%75.04%4.74%

Bajaj Finance Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:27%
3 Years:16%
TTM:33%
Compounded Profit Growth
10 Years:%
5 Years:36%
3 Years:30%
TTM:28%
Stock Price CAGR
10 Years:44%
5 Years:18%
3 Years:15%
1 Year:18%
Return on Equity
10 Years:%
5 Years:19%
3 Years:19%
Last Year:23%

Last Updated: April 9, 2024, 9:15 am

Bajaj Finance Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5054109115115120120121121121
Reserves4,7507,2719,49115,73319,58232,20836,79843,59254,25159,753
Borrowings26,65537,02549,25066,557101,588129,806131,634165,232216,690256,549
Other Liabilities1,3252,6244,8812,3932,9482,2572,9183,5624,1665,494
Total Liabilities32,78046,97363,73184,798124,233164,391171,470212,506275,229321,917
Fixed Assets2522903664706951,3211,3161,7162,3082,686
CWIP00000051348015
Investments3261,0294,0703,1398,59917,54418,39712,24622,75220,722
Other Assets32,20145,65459,29581,189114,939145,526151,707198,510250,089298,493
Total Assets32,78046,97363,73184,798124,233164,391171,470212,506275,229321,917

Bajaj Finance Ltd Reserves and Borrowings Chart

Bajaj Finance Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -7,064-9,870-10,439-20,566-29,062-24,412-807-37,090-42,140
Cash from Investing Activity -360-687-3,0471,075-5,379-8,758-4296,347-10,365
Cash from Financing Activity 6,86711,65612,51319,50334,44934,1671,74132,27550,675
Net Cash Flow-5571,100-9721399985051,532-1,831

Bajaj Finance Ltd Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-25.00-35.00-46.00-62.00-96.00-120.00-121.00-154.00-204.00

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 Finance Ltd Free Cash Flow Chart

Bajaj Finance Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %21%22%20%22%20%13%17%23%22%

Bajaj Finance Ltd Financial Efficiency Indicators Chart

Bajaj Finance Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters56.03%56.03%56.03%55.86%55.86%55.86%55.91%55.91%55.87%55.87%54.78%54.69%
FIIs24.03%23.64%22.85%21.41%19.98%20.49%19.87%19.16%20.09%20.41%20.92%20.55%
DIIs9.33%9.73%10.11%11.22%12.03%12.09%12.37%12.92%12.83%13.05%14.01%14.33%
Government0.00%0.00%0.00%0.00%0.00%0.07%0.07%0.07%0.07%0.07%0.07%0.07%
Public10.40%10.42%10.91%11.15%11.84%11.26%11.60%11.75%10.99%10.50%10.17%10.19%
Others0.21%0.17%0.10%0.36%0.29%0.22%0.18%0.17%0.13%0.10%0.05%0.16%
No. of Shareholders4,88,7635,25,2576,36,9317,18,6388,68,2717,67,7228,16,2928,90,7067,84,8837,26,5837,45,0407,99,199

Bajaj Finance Ltd Shareholding Pattern Chart

No. of Bajaj Finance Ltd Shareholders

Bajaj Finance Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF5,035,4452.013455.782,815,8332024-07-0578.83%
SBI S&P BSE Sensex ETF3,561,6802.332444.672,815,8332024-07-0526.49%
SBI Equity Hybrid Fund3,515,8333.712412.882,815,8332024-07-0524.86%
Axis ELSS Tax Saver Fund3,091,4726.332121.652,815,8332024-07-059.79%
Axis Bluechip Fund3,030,2456.362079.632,815,8332024-07-057.61%
SBI Blue Chip Fund2,815,8334.471932.482,815,8332024-07-050%
SBI Focused Equity Fund2,100,0004.591441.212,815,8332024-07-05-25.42%
UTI Flexi Cap Fund1,938,0415.291330.062,815,8332024-07-05-31.17%
Axis Focused 25 Fund1,636,8568.11123.362,815,8332024-07-05-41.87%
UTI Nifty 50 ETF1,394,4182.01956.982,815,8332024-07-05-50.48%

Bajaj Finance Ltd ROCE Trend

Bajaj Finance Ltd EPS Trend

Bajaj Finance Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)236.89190.53116.6473.5889.77
Diluted EPS (Rs.)235.98189.57115.7973.0089.07
Cash EPS (Rs.)244.77198.39122.8778.8792.65
Book Value[Excl.RevalReserv]/Share (Rs.)1241.03899.53724.56613.67538.84
Book Value[Incl.RevalReserv]/Share (Rs.)1241.03899.53724.56613.67538.84
Revenue From Operations / Share (Rs.)889.47684.88524.32443.29439.60
PBDIT / Share (Rs.)626.37472.69325.49261.49284.86
PBIT / Share (Rs.)615.32464.65319.11256.09279.95
PBT / Share (Rs.)312.33256.86157.5399.61122.05
Net Profit / Share (Rs.)233.71190.35116.5073.4787.74
NP After MI And SOA / Share (Rs.)233.84190.38116.5073.4787.74
PBDIT Margin (%)70.4269.0162.0758.9964.79
PBIT Margin (%)69.1767.8460.8657.7763.68
PBT Margin (%)35.1137.5030.0422.4627.76
Net Profit Margin (%)26.2727.7922.2116.5719.95
NP After MI And SOA Margin (%)26.2827.7922.2116.5719.95
Return on Networth / Equity (%)18.8421.1616.0711.9716.28
Return on Capital Employeed (%)48.9214.7612.3912.6315.55
Return On Assets (%)3.844.183.302.573.20
Long Term Debt / Equity (X)0.002.492.542.282.32
Total Debt / Equity (X)3.823.993.783.574.02
Asset Turnover Ratio (%)0.160.160.160.150.18
Current Ratio (X)1.243.203.673.412.87
Quick Ratio (X)1.243.203.673.412.87
Dividend Payout Ratio (NP) (%)0.0010.498.570.0018.04
Dividend Payout Ratio (CP) (%)0.0010.068.120.0017.08
Earning Retention Ratio (%)0.0089.5191.430.0081.96
Cash Earning Retention Ratio (%)0.0089.9491.880.0082.92
Interest Coverage Ratio (X)2.072.272.011.671.80
Interest Coverage Ratio (Post Tax) (X)1.771.921.721.471.56
Enterprise Value (Cr.)730175.45551808.82599493.12439227.02261375.63
EV / Net Operating Revenue (X)13.2813.3318.9516.479.91
EV / EBITDA (X)18.8619.3130.5327.9215.29
MarketCap / Net Operating Revenue (X)8.148.2013.8411.625.04
Retention Ratios (%)0.0089.5091.420.0081.95
Price / BV (X)5.836.2410.028.394.11
Price / Net Operating Revenue (X)8.148.2013.8411.625.04
EarningsYield0.030.030.010.010.03

Bajaj Finance Ltd Profitability Ratios (%)

Bajaj Finance Ltd Liquidity Ratios

Bajaj Finance Ltd Liquidity Ratios (%)

Bajaj Finance Ltd Interest Coverage Ratios (%)

Bajaj Finance Ltd Valuation Ratios

Fair Value

Fair Value: 8,386.77

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: 17.49% compared to the current price 7138

Intrinsic Value: 10,143.16

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: 42.10% compared to the current price ₹7138

Last 5 Year EPS CAGR: 20.94%

*Investments are subject to market risks

Strength and Weakness of Bajaj Finance Ltd Stock

Unable to fetch valid data for stock valuation.

Should I Buy Bajaj Finance 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 Finance Ltd:
    1. Net Profit Margin: 26.27%
      • 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: 48.92% (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%: 18.84% (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): 1.77
      • 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: 1.24
      • 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: 30.6 (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: 3.82
      • 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 Finance Ltd?

The latest fair value of Bajaj Finance Ltd is ₹8386.77.

What is the Market Cap of Bajaj Finance Ltd?

The Market Cap of Bajaj Finance Ltd is 4,41,840 Cr..

What is the current Stock Price of Bajaj Finance Ltd as on 06 July 2024?

The current stock price of Bajaj Finance Ltd as on 06 July 2024 is 7,138.

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

In FY 2024, the High / Low of Bajaj Finance Ltd stocks is 8,192/6,188.

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

The Stock P/E of Bajaj Finance Ltd is 30.6.

What is the Book Value of Bajaj Finance Ltd?

The Book Value of Bajaj Finance Ltd is 1,234.

What is the Dividend Yield of Bajaj Finance Ltd?

The Dividend Yield of Bajaj Finance Ltd is 0.50 %.

What is the ROCE of Bajaj Finance Ltd?

The ROCE of Bajaj Finance Ltd is 11.9 %.

What is the ROE of Bajaj Finance Ltd?

The ROE of Bajaj Finance Ltd is 22.1 %.

What is the Face Value of Bajaj Finance Ltd?

The Face Value of Bajaj Finance Ltd is 2.00.

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 Finance 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