BSE:500034

Stock Analysis Report

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Market Cap

₹3.7t

Last Updated

2021/07/23 12:16 UTC

Data Sources

Company Financials +

Executive Summary

Bajaj Finance Limited operates as a non-banking financial company in India. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Bajaj Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500034 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 500034's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

500034

-0.5%

IN Consumer Finance

-0.1%

IN Market


1 Year Return

90.6%

500034

66.6%

IN Consumer Finance

53.0%

IN Market

Return vs Industry: 500034 exceeded the Indian Consumer Finance industry which returned 66.6% over the past year.

Return vs Market: 500034 exceeded the Indian Market which returned 53% over the past year.


Shareholder returns

500034IndustryMarket
7 Day1.2%-0.5%-0.1%
30 Day3.0%1.5%1.3%
90 Day32.9%19.8%14.9%
1 Year90.9%90.6%67.5%66.6%55.1%53.0%
3 Year130.1%128.8%80.0%65.1%40.2%33.0%
5 Year504.4%498.4%193.8%164.1%82.5%67.3%

Long-Term Price Volatility Vs. Market

How volatile is Bajaj Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bajaj Finance undervalued compared to its fair value and its price relative to the market?

83.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500034 (₹6198) is trading above our estimate of fair value (₹1056.39)

Significantly Below Fair Value: 500034 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500034 is poor value based on its PE Ratio (83.5x) compared to the Indian Consumer Finance industry average (17x).

PE vs Market: 500034 is poor value based on its PE Ratio (83.5x) compared to the Indian market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: 500034 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: 500034 is overvalued based on its PB Ratio (10.1x) compared to the IN Consumer Finance industry average (0.8x).


Future Growth

How is Bajaj Finance forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500034's forecast earnings growth (25.3% per year) is above the savings rate (6.8%).

Earnings vs Market: 500034's earnings (25.3% per year) are forecast to grow faster than the Indian market (21.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500034's revenue (19.8% per year) is forecast to grow faster than the Indian market (12.6% per year).

High Growth Revenue: 500034's revenue (19.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500034's Return on Equity is forecast to be high in 3 years time (21.2%)


Past Performance

How has Bajaj Finance performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500034 has high quality earnings.

Growing Profit Margin: 500034's current net profit margins (25.3%) are lower than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: 500034's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: 500034's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500034 had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (5.3%).


Return on Equity

High ROE: 500034's Return on Equity (12.1%) is considered low.


Financial Health

How is Bajaj Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 500034's short term assets (₹1,681.1B) exceed its short term liabilities (₹567.6B).

Long Term Liabilities: 500034's short term assets (₹1,681.1B) exceed its long term liabilities (₹778.5B).


Debt to Equity History and Analysis

Debt Level: 500034's debt to equity ratio (287.1%) is considered high.

Reducing Debt: 500034's debt to equity ratio has reduced from 506.2% to 287.1% over the past 5 years.

Debt Coverage: 500034's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 500034's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Bajaj Finance current dividend yield, its reliability and sustainability?

0.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500034's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: 500034's dividend (0.16%) is low compared to the top 25% of dividend payers in the Indian market (1.44%).


Stability and Growth of Payments

Stable Dividend: 500034 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 500034 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 500034 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500034's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Rajeev Jain (51 yo)

13.25yrs

Tenure

₹333,900,000

Compensation

Mr. Rajeev A. Jain is the Managing Director at Bajaj Housing Finance Ltd. He has been a Director at Bajaj Housing Finance Ltd. since November 10, 2014. He has been Managing Director and Executive Director ...


CEO Compensation Analysis

Compensation vs Market: Rajeev's total compensation ($USD4.48M) is above average for companies of similar size in the Indian market ($USD1.25M).

Compensation vs Earnings: Rajeev's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 500034's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: 500034's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500034 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bajaj Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Bajaj Finance Limited
  • Panchshil Tech Park
  • 3rd Floor
  • Pune
  • Maharashtra
  • 411 014
  • India

Listings


Biography

Bajaj Finance Limited operates as a non-banking financial company in India. The company offers consumer durable, lifestyle, lifecare, digital product, two and three wheeler, developer, used car, medical eq...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 12:16
End of Day Share Price2021/07/22 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.