Bajaj Finance
Market Cap
₹2.9t
Last Updated
2020/12/01 12:06 UTC
Data Sources
Company Financials +
Executive Summary
Bajaj Finance Ltd. operates as a non-banking financial company in India. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable 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 not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: 500034's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
1.0%
500034
1.1%
IN Consumer Finance
1.2%
IN Market
1 Year Return
22.4%
500034
12.5%
IN Consumer Finance
10.4%
IN Market
Return vs Industry: 500034 exceeded the Indian Consumer Finance industry which returned 13.6% over the past year.
Return vs Market: 500034 exceeded the Indian Market which returned 8.3% over the past year.
Shareholder returns
| 500034 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 1.1% | 1.2% |
| 30 Day | 46.8% | 28.6% | 12.1% |
| 90 Day | 32.3% | 22.6% | 12.6% |
| 1 Year | 22.7%22.4% | 17.7%12.5% | 12.4%10.4% |
| 3 Year | 186.2%184.5% | 73.3%57.3% | 10.0%4.6% |
| 5 Year | 790.9%780.3% | 265.9%222.8% | 59.8%47.8% |
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
2 years 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?
64.68x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 500034 (₹4857.2) is trading above our estimate of fair value (₹714)
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 (64.7x) compared to the IN Consumer Finance industry average (12x).
PE vs Market: 500034 is poor value based on its PE Ratio (64.7x) compared to the Indian market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: 500034 is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: 500034 is overvalued based on its PB Ratio (8.5x) compared to the IN Consumer Finance industry average (0.6x).
Next Steps
Future Growth
How is Bajaj Finance forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
41.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 500034's forecast earnings growth (41.3% per year) is above the savings rate (7.2%).
Earnings vs Market: 500034's earnings (41.3% per year) are forecast to grow faster than the Indian market (24.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 500034's revenue (18.3% per year) is forecast to grow faster than the Indian market (11.5% per year).
High Growth Revenue: 500034's revenue (18.3% 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 low in 3 years time (19.9%).
Next Steps
Past Performance
How has Bajaj Finance performed over the past 5 years?
25.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 500034 has high quality earnings.
Growing Profit Margin: 500034's current net profit margins (25.6%) are lower than last year (34.6%).
Past Earnings Growth Analysis
Earnings Trend: 500034's earnings have grown significantly by 25.6% 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 (-9.2%) over the past year, making it difficult to compare to the Consumer Finance industry average (-0.4%).
Return on Equity
High ROE: 500034's Return on Equity (13.1%) is considered low.
Next Steps
Financial Health
How is Bajaj Finance's financial position?
Financial Position Analysis
Short Term Liabilities: 500034's short term assets (₹1,360.9B) exceed its short term liabilities (₹236.3B).
Long Term Liabilities: 500034's short term assets (₹1,360.9B) exceed its long term liabilities (₹1,045.2B).
Debt to Equity History and Analysis
Debt Level: 500034's debt to equity ratio (300.3%) is considered high.
Reducing Debt: 500034's debt to equity ratio has reduced from 520.5% to 300.3% over the past 5 years.
Debt Coverage: 500034's debt is not well covered by operating cash flow (3.4%).
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 current dividend yield, its reliability and sustainability?
0.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 500034's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.52%).
High Dividend: 500034's dividend (0.21%) is low compared to the top 25% of dividend payers in the Indian market (2.1%).
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?
3.3yrs
Average management tenure
CEO
Rajeev Jain (50 yo)
12.58yrs
Tenure
₹175,664,205
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 ($USD2.37M) is above average for companies of similar size in the Indian market ($USD945.39K).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 12.58yrs | ₹175.66m | 0.0044% ₹ 129.7m | |
| Chief Financial Officer | 4.75yrs | ₹57.22m | 0.010% ₹ 300.0m | |
| Company Secretary & Compliance Officer | 2.08yrs | ₹10.28m | no data | |
| Business Head of Loan Against Security & Corporate Finance | no data | no data | 0.0026% ₹ 75.0m | |
| General Counsel | no data | no data | 0.0012% ₹ 34.7m | |
| President of Rural | 1.83yrs | no data | 0.0010% ₹ 30.3m | |
| President of Collections | 3.33yrs | no data | no data | |
| Deputy Chief Executive Officer | 3.33yrs | no data | 0.00017% ₹ 5.0m | |
| Chief Risk Officer | 0.83yr | no data | 0.00011% ₹ 3.2m | |
| Chief Executive Officer of BHFL | no data | no data | 0.0062% ₹ 181.8m | |
| Treasurer | no data | no data | 0.032% ₹ 935.1m | |
| Zonal Credit Manager of Commercial Lending | no data | no data | no data |
3.3yrs
Average Tenure
Experienced Management: 500034's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 12.58yrs | ₹175.66m | 0.0044% ₹ 129.7m | |
| Non-Executive Independent Director | 8.5yrs | ₹3.60m | no data | |
| Non-Executive Independent Director | 33.67yrs | ₹900.00k | 0.0022% ₹ 66.2m | |
| Non-Executive Independent Director | 12.08yrs | ₹2.10m | no data | |
| Non-Executive Chairman | 15.83yrs | ₹4.80m | 0.078% ₹ 2.3b | |
| Non-Executive Director | 26.5yrs | ₹1.50m | 0.00017% ₹ 5.0m | |
| Non-Executive & Non-Independent Director | 33.67yrs | ₹2.70m | 0.0017% ₹ 49.1m | |
| Non-Executive Director | 30.5yrs | ₹1.20m | 0.031% ₹ 911.9m | |
| Non Executive Independent Director | 1.58yrs | ₹2.40m | no data | |
| Non-Executive Independent Director | 33.67yrs | ₹4.20m | no data | |
| Non-Executive Independent Director | 6.67yrs | ₹2.70m | no data | |
| Non Executive Independent Director | 1.58yrs | ₹2.10m | no data |
14.0yrs
Average Tenure
67yo
Average Age
Experienced Board: 500034's board of directors are seasoned and experienced ( 14 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 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
- Name: Bajaj Finance Limited
- Ticker: 500034
- Exchange: BSE
- Founded: 1987
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: ₹2.942t
- Shares outstanding: 599.91m
- Website: https://www.bajajfinserv.in/corporate-bajaj-finance
Number of Employees
Location
- Bajaj Finance Limited
- Panchshil Tech Park
- 3rd 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 Ltd. operates as a non-banking financial company in India. It offers durable, lifestyle, digital product, two and three wheeler, retailer, developer, used car, vendor, light engineering, corp...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/01 12:06 |
| End of Day Share Price | 2020/12/01 00:00 |
| Earnings | 2020/09/30 |
| 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.