Bajaj Finance
Market Cap
₹1.1t
Last Updated
2020/05/25 12:51 UTC
Data Sources
Company Financials +
Executive Summary
Bajaj Finance Limited operates as a non-banking financial company in India.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
High growth potential average dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-2.3%
500034
-3.0%
IN Consumer Finance
1.8%
IN Market
1 Year Return
-45.0%
500034
-42.0%
IN Consumer Finance
-23.7%
IN Market
Return vs Industry: 500034 underperformed the Indian Consumer Finance industry which returned -42% over the past year.
Return vs Market: 500034 underperformed the Indian Market which returned -23.2% over the past year.
Shareholder returns
| 500034 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -3.0% | 1.8% |
| 30 Day | -4.1% | -5.5% | -0.5% |
| 90 Day | -60.7% | -54.5% | -22.2% |
| 1 Year | -44.8%-45.0% | -41.6%-42.0% | -22.2%-23.7% |
| 3 Year | 46.2%45.0% | 1.2%-1.1% | -12.1%-16.8% |
| 5 Year | 340.2%333.5% | 82.3%74.2% | 4.5%-5.7% |
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
1 year ago | Simply Wall St
How Do Analysts See Bajaj Finance Limited (BOM:500034) Performing In The Next Couple Of Years?Valuation
Is Bajaj Finance undervalued compared to its fair value and its price relative to the market?
21.12x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 500034 (₹1895.95) is trading above our estimate of fair value (₹491.79)
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 (21.1x) compared to the Consumer Finance industry average (9.7x).
PE vs Market: 500034 is poor value based on its PE Ratio (21.1x) compared to the Indian market (9.9x).
Price to Earnings Growth Ratio
PEG Ratio: 500034 is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 500034 is overvalued based on its PB Ratio (3.5x) compared to the IN Consumer Finance industry average (0.5x).
Next Steps
Future Growth
How is Bajaj Finance forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
20.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 500034's forecast earnings growth (20.5% per year) is above the savings rate (7.2%).
Earnings vs Market: 500034's earnings (20.5% per year) are forecast to grow faster than the Indian market (16.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 500034's revenue (13% per year) is forecast to grow faster than the Indian market (7.2% per year).
High Growth Revenue: 500034's revenue (13% 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 (21.4%)
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Past Performance
How has Bajaj Finance performed over the past 5 years?
28.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 500034 has a high level of non-cash earnings.
Growing Profit Margin: 500034's current net profit margins (31.1%) are lower than last year (33.6%).
Past Earnings Growth Analysis
Earnings Trend: 500034's earnings have grown significantly by 28.3% per year over the past 5 years.
Accelerating Growth: 500034's earnings growth over the past year (31.6%) exceeds its 5-year average (28.3% per year).
Earnings vs Industry: 500034 earnings growth over the past year (31.6%) exceeded the Consumer Finance industry 15.6%.
Return on Equity
High ROE: 500034's Return on Equity (16.3%) is considered low.
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Financial Health
How is Bajaj Finance's financial position?
Financial Position Analysis
Short Term Liabilities: 500034's short term assets (₹1,445.7B) exceed its short term liabilities (₹231.9B).
Long Term Liabilities: 500034's short term assets (₹1,445.7B) exceed its long term liabilities (₹1,088.7B).
Debt to Equity History and Analysis
Debt Level: 500034's debt to equity ratio (337.6%) is considered high.
Reducing Debt: 500034's debt to equity ratio has reduced from 554.9% to 337.6% 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
Next Steps
Dividend
What is Bajaj Finance's current dividend yield, its reliability and sustainability?
0.53%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 500034's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.86%).
High Dividend: 500034's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (3.7%).
Stability and Growth of Payments
Stable Dividend: 500034's dividends per share have been stable in the past 10 years.
Growing Dividend: 500034's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (11.1%), 500034's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 500034's dividends in 3 years are forecast to be thoroughly covered by earnings (9.9% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Rajeev Jain (49yo)
12.08yrs
Tenure
₹212,637,012
Compensation
Mr. Rajeev A. Jain is the Managing Director at Bajaj Housing Finance Ltd. He has been the Director at Bajaj Housing Finance Ltd. since November 10, 2014. He has been Managing Director and Executive Directo ...
CEO Compensation Analysis
Compensation vs Market: Rajeev's total compensation ($USD2.80M) is above average for companies of similar size in the Indian market ($USD1.06M).
Compensation vs Earnings: Rajeev's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 12.08yrs | ₹212.64m | 0.0088% ₹99.9m | |
| Chief Financial Officer | 4.25yrs | ₹36.88m | 0.0063% ₹71.0m | |
| Company Secretary & Compliance Officer | 1.58yrs | ₹5.75m | no data | |
| Business Head of Loan Against Security & Corporate Finance | no data | no data | 0.0024% ₹27.6m | |
| President of Rural | 1.33yrs | no data | 0.0012% ₹13.3m | |
| President of Risk & Collections | 2.83yrs | no data | 0.0037% ₹42.6m | |
| President of Consumer Business | 2.83yrs | no data | 0.00017% ₹1.9m | |
| Chief Executive Officer of BHFL | no data | no data | 0.010% ₹117.8m | |
| Treasurer | no data | no data | 0.033% ₹371.9m | |
| Zonal Credit Manager of Commercial Lending | no data | no data | no data |
2.8yrs
Average Tenure
Experienced Management: 500034's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 12.08yrs | ₹212.64m | 0.0088% ₹99.9m | |
| Non-Executive Independent Director | 8yrs | ₹1.80m | no data | |
| Non-Executive Independent Director | 33.17yrs | ₹1.50m | 0.0022% ₹25.6m | |
| Non-Executive Independent Director | 11.58yrs | ₹1.20m | no data | |
| Non-Executive Vice Chairman | 7.33yrs | ₹2.55m | 0.049% ₹554.9m | |
| Non-Executive Director | 26yrs | ₹1.05m | 0.029% ₹333.7m | |
| Non Executive Chairman | no data | ₹1.35m | 0.0017% ₹19.0m | |
| Non-Executive Director | 30yrs | ₹1.20m | 0.031% ₹352.6m | |
| Non-Executive Independent Director | 33.17yrs | ₹1.95m | no data | |
| Non-Executive Independent Director | 6.17yrs | ₹1.35m | no data |
11.6yrs
Average Tenure
66yo
Average Age
Experienced Board: 500034's board of directors are seasoned and experienced ( 11.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 500034 insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.
Top Shareholders
Company Information
Bajaj Finance Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Bajaj Finance Limited
- Ticker: 500034
- Exchange: BSE
- Founded: 1987
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: ₹1.137t
- Shares outstanding: 599.54m
- Website: https://www.bajajfinserv.in
Number of Employees
Location
- Bajaj Finance Limited
- Bajaj Finserv Corporate Office
- 4th Floor
- Pune
- Maharashtra
- 411 014
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500034 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jun 2000 |
| BAJFINANCE | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jun 2000 |
Biography
Bajaj Finance Limited operates as a non-banking financial company in India. It offers personal loans, business loans, home loans, loans for doctors, loans against fixed deposit, pre-owned vehicle finance, loans against property, loans to chartered accountants. The company also invests in fixed deposits and mutual funds; and offers credit cards, insurance, and value added services. The company was formerly known as Bajaj Auto Finance Limited and changed its name to Bajaj Finance Limited in September 2010. The company was incorporated in 1987 and is based in Pune, India. Bajaj Finance Limited is a subsidiary of Bajaj Finserv Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/25 12:51 |
| End of Day Share Price | 2020/05/22 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.