BSE:500034

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Exceptional growth potential with proven track record.


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


Market Performance


7 Day Return

-2.3%

BSE:500034

-1.8%

IN Consumer Finance

-0.7%

IN Market


1 Year Return

17.0%

BSE:500034

0.5%

IN Consumer Finance

-12.1%

IN Market

500034 outperformed the Consumer Finance industry which returned 0.2% over the past year.

500034 outperformed the Market in India which returned -12.1% over the past year.


Share holder returns

500034IndustryMarket
7 Day-2.3%-1.8%-0.7%
30 Day-3.7%-4.1%-4.6%
90 Day1.1%-1.2%-4.3%
1 Year17.2%17.0%1.1%0.5%-10.3%-12.1%
3 Year230.1%228.1%64.9%61.4%18.9%12.8%
5 Year1326.5%1308.0%246.0%229.7%37.6%24.7%

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

Valuation

Is Bajaj Finance undervalued based on future cash flows and its price relative to the stock market?

44.2x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Bajaj Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Bajaj Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Bajaj Finance is overvalued based on earnings compared to the IN Consumer Finance industry average.

Bajaj Finance is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Bajaj Finance is poor value based on expected growth next year.


Price Based on Value of Assets

Bajaj Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Bajaj Finance expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bajaj Finance's revenue is expected to grow significantly at over 20% yearly.

Bajaj Finance's earnings are expected to grow significantly at over 20% yearly.

Bajaj Finance's revenue growth is expected to exceed the India market average.

Bajaj Finance's earnings growth is expected to exceed the India market average.

Bajaj Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Bajaj Finance is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Bajaj Finance performed over the past 5 years?

30.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bajaj Finance has delivered over 20% year on year earnings growth in the past 5 years.

Bajaj Finance's 1-year earnings growth exceeds its 5-year average (42.8% vs 30.5%)

Bajaj Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (42.8% vs 12.9%).


Return on Equity

Whilst Bajaj Finance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Bajaj Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bajaj Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Bajaj Finance's financial position?


Financial Position Analysis

Bajaj Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bajaj Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bajaj Finance's level of debt (455.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (495.5% vs 455.5% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Bajaj Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

0.33%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bajaj Finance's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.63%).

Bajaj Finance's dividend is below the markets top 25% of dividend payers in India (2.52%).

Bajaj Finance is not paying a notable dividend for India, therefore no need to check if the payments are stable.

Bajaj Finance is not paying a notable dividend for India, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Bajaj Finance's dividends as it is not paying a notable one for India.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (10.3x coverage).


Next Steps

Management

What is the CEO of Bajaj Finance's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Rajeev Jain (49yo)

11.3yrs

Tenure

₹212,637,012

Compensation

Mr. Rajeev A. Jain has been Managing Director and Executive Director of Bajaj Finance Limited since April 1, 2015. Mr. Jain served as the Chief Executive Officer of Bajaj Finserv Limited. He served as the  ...


CEO Compensation Analysis

Rajeev's remuneration is higher than average for companies of similar size in India.

Rajeev's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

The tenure for the Bajaj Finance management team is about average.


Board Age and Tenure

12.3yrs

Average Tenure

70.5yo

Average Age

The average tenure for the Bajaj Finance board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Bajaj Finance individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Sell₹41,333,18416 Aug 19
Ashish Sapra
EntityIndividual
Shares12,685
Max Price₹3,258.43
Sell₹110,437,29114 Aug 19
Ashish Sapra
EntityIndividual
Shares34,390
Max Price₹3,211.32
Sell₹26,399,99909 Aug 19
Ajita Kakade
EntityIndividual
Shares8,000
Max Price₹3,300.00
Buy₹1,483,08802 Aug 19
Nikhil Patil
EntityIndividual
Shares458
Max Price₹3,247.04
Buy₹4,826,14502 Aug 19
Dipak Kumar Poddar
EntityIndividual
Role
Member of the Board of Directors
Shares1,500
Max Price₹3,217.43
Sell₹32,058,60001 Aug 19
Anurag Chottani
EntityIndividual
Shares10,000
Max Price₹3,205.86
Sell₹32,664,76501 Aug 19
Raul Verma
EntityIndividual
Shares10,000
Max Price₹3,280.00
Sell₹21,009,48628 Jun 19
Hemen Shah
EntityIndividual
Shares5,735
Max Price₹3,685.00
Sell₹29,606,93026 Jun 19
Anurag Chottani
EntityIndividual
Shares8,300
Max Price₹3,567.10
Sell₹5,541,80026 Jun 19
Hemen Shah
EntityIndividual
Shares1,550
Max Price₹3,576.00
Sell₹10,746,00025 Jun 19
Hemen Shah
EntityIndividual
Shares3,000
Max Price₹3,584.00
Sell₹39,299,77124 Jun 19
Amit Raghuvanshi
EntityIndividual
Shares11,100
Max Price₹3,540.52
Sell₹10,840,57221 Jun 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares3,050
Max Price₹3,563.40
Sell₹46,160,05221 Jun 19
Vivek Likhite
EntityIndividual
Shares13,000
Max Price₹3,558.81
Sell₹7,135,00021 Jun 19
C. V. N Murthy
EntityIndividual
Shares2,000
Max Price₹3,567.50
Sell₹7,049,52018 Jun 19
Vivek Likhite
EntityIndividual
Shares2,000
Max Price₹3,524.76
Sell₹888,75018 Jun 19
Hemen Shah
EntityIndividual
Shares250
Max Price₹3,555.00
Sell₹35,18113 Jun 19
Deepak Bagati
EntityIndividual
Role
President of Collections & SME Business
Shares10
Max Price₹3,518.12
Sell₹14,248,38512 Jun 19
Deepak Bagati
EntityIndividual
Role
President of Collections & SME Business
Shares4,050
Max Price₹3,518.12
Sell₹3,550,00012 Jun 19
C. V. N Murthy
EntityIndividual
Shares1,000
Max Price₹3,550.00
Sell₹1,768,89011 Jun 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares500
Max Price₹3,537.78
Sell₹9,895,11611 Jun 19
Sandeep Vijay Jain
EntityIndividual
Role
Chief Financial Officer
Shares2,800
Max Price₹3,533.97
Sell₹105,726,93211 Jun 19
Deepak Kumar Reddy
EntityIndividual
Shares29,923
Max Price₹3,533.30
Sell₹175,679,07207 Jun 19
Deepak Kumar Reddy
EntityIndividual
Shares49,934
Max Price₹3,522.26
Sell₹8,303,39004 Jun 19
Hemen Shah
EntityIndividual
Shares2,350
Max Price₹3,541.00
Sell₹10,961,90404 Jun 19
Rajib Bhowmick
EntityIndividual
Shares3,225
Max Price₹3,399.04
Sell₹5,974,48904 Jun 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares1,700
Max Price₹3,541.14
Sell₹3,522,50031 May 19
Hemen Shah
EntityIndividual
Shares1,000
Max Price₹3,530.00
Sell₹6,690,89630 May 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares1,925
Max Price₹3,475.79
Sell₹20,297,60930 May 19
Ajita Kakade
EntityIndividual
Shares5,948
Max Price₹3,412.51
Sell₹3,470,00027 May 19
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares1,000
Max Price₹3,470.00
Sell₹34,594,49827 May 19
Manish Jain
EntityIndividual
Shares10,000
Max Price₹3,459.45
Sell₹5,979,15427 May 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares1,725
Max Price₹3,471.54
Sell₹103,181,50624 May 19
Ashish Sapra
EntityIndividual
Shares29,950
Max Price₹3,461.22
Sell₹1,762,67723 May 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares511
Max Price₹3,451.37
Sell₹7,709,85123 May 19
Hemen Shah
EntityIndividual
Shares2,200
Max Price₹3,514.00
Sell₹3,515,00023 May 19
C. V. N Murthy
EntityIndividual
Shares1,000
Max Price₹3,515.00
Sell₹3,515,00023 May 19
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares1,000
Max Price₹3,515.00
Sell₹33,674,62923 May 19
Raul Verma
EntityIndividual
Shares9,719
Max Price₹3,500.00
Sell₹27,770,13423 May 19
Vivek Likhite
EntityIndividual
Shares8,000
Max Price₹3,508.33
Sell₹3,444,00023 May 19
Manish Jain
EntityIndividual
Shares1,000
Max Price₹3,444.00
Sell₹17,044,21121 May 19
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares5,000
Max Price₹3,480.00
Sell₹34,120,50021 May 19
Vivek Likhite
EntityIndividual
Shares10,000
Max Price₹3,412.05
Sell₹2,411,50921 May 19
Hemen Shah
EntityIndividual
Shares700
Max Price₹3,475.00
Sell₹26,538,66921 May 19
Amit Raghuvanshi
EntityIndividual
Shares7,780
Max Price₹3,411.14
Sell₹6,809,70721 May 19
Manish Jain
EntityIndividual
Shares2,000
Max Price₹3,426.40
Sell₹6,849,56421 May 19
C. V. N Murthy
EntityIndividual
Shares2,000
Max Price₹3,475.00
Sell₹21,172,30403 Apr 19
Manish Jain
EntityIndividual
Shares7,000
Max Price₹3,024.61
Sell₹6,117,00003 Apr 19
C. V. N Murthy
EntityIndividual
Shares2,000
Max Price₹3,058.50
Sell₹10,926,58303 Apr 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares3,600
Max Price₹3,079.00
Sell₹3,040,00002 Apr 19
C. V. N Murthy
EntityIndividual
Shares1,000
Max Price₹3,040.00
Sell₹10,250,51230 Mar 19
Vivek Likhite
EntityIndividual
Shares3,400
Max Price₹3,014.86
Sell₹8,877,57130 Mar 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares2,950
Max Price₹3,023.80
Sell₹26,429,99928 Mar 19
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares9,000
Max Price₹2,936.67
Sell₹4,503,00028 Mar 19
Vivek Likhite
EntityIndividual
Shares1,500
Max Price₹3,002.00
Sell₹17,472,74828 Mar 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares5,900
Max Price₹2,981.12
Sell₹10,755,29920 Mar 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Shares3,650
Max Price₹2,952.48
Sell₹5,597,30015 Mar 19
Raul Verma
EntityIndividual
Shares2,000
Max Price₹2,798.65
Sell₹2,828,00015 Mar 19
C. V. N Murthy
EntityIndividual
Shares1,000
Max Price₹2,828.00
Sell₹4,180,12111 Mar 19
C. V. N Murthy
EntityIndividual
Shares1,500
Max Price₹2,795.00
Sell₹6,828,66028 Feb 19
Dilip Kamble
EntityIndividual
Shares2,572
Max Price₹2,655.00
Sell₹3,892,50022 Feb 19
Raul Verma
EntityIndividual
Shares1,500
Max Price₹2,595.00
Sell₹3,158,44714 Feb 19
Raul Verma
EntityIndividual
Shares1,200
Max Price₹2,632.04
Sell₹6,800,00013 Feb 19
Anurag Chottani
EntityIndividual
Shares2,500
Max Price₹2,720.00
Sell₹3,019,20013 Feb 19
Anand Kumar
EntityIndividual
Shares1,110
Max Price₹2,720.00
Sell₹8,035,56908 Feb 19
C. V. N Murthy
EntityIndividual
Shares3,000
Max Price₹2,678.52
Sell₹437,999,98706 Feb 19
Rajeev Jain
EntityIndividual
Role
MD & Executive Director
Member of the Board of Directors
Shares167,954
Max Price₹2,608.55
Sell₹13,100,00004 Feb 19
Anurag Chottani
EntityIndividual
Shares5,000
Max Price₹2,620.00
Sell₹1,326,15003 Jan 19
C. V. N Murthy
EntityIndividual
Shares500
Max Price₹2,652.30
Sell₹13,125,00031 Dec 18
Rajendra Lakhotia
EntityIndividual
Shares5,000
Max Price₹2,625.00
Sell₹12,925,00028 Dec 18
Rajendra Lakhotia
EntityIndividual
Shares5,000
Max Price₹2,585.00
Sell₹9,037,00020 Dec 18
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares3,500
Max Price₹2,582.00
Sell₹5,137,50020 Dec 18
C. V. N Murthy
EntityIndividual
Shares2,000
Max Price₹2,568.75
Sell₹1,262,50014 Dec 18
C. V. N Murthy
EntityIndividual
Shares500
Max Price₹2,525.00
Sell₹7,575,00005 Dec 18
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares3,000
Max Price₹2,525.00
Sell₹1,632,68012 Nov 18
Raul Verma
EntityIndividual
Shares686
Max Price₹2,380.00
Sell₹2,450,00005 Nov 18
C. V. N Murthy
EntityIndividual
Shares1,000
Max Price₹2,450.00
Sell₹242,00001 Nov 18
Vivek Likhite
EntityIndividual
Shares100
Max Price₹2,420.00
Sell₹1,178,00331 Oct 18
Vivek Likhite
EntityIndividual
Shares500
Max Price₹2,356.01
Sell₹4,774,71531 Oct 18
C. V. N Murthy
EntityIndividual
Shares2,000
Max Price₹2,401.00
Buy₹1,377,10825 Sep 18
Anant Damle
EntityIndividual
Shares550
Max Price₹2,574.74
Sell₹138,499,99801 Sep 18
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares47,000
Max Price₹2,946.81
Sell₹5,947,18830 Aug 18
Vivek Likhite
EntityIndividual
Shares2,000
Max Price₹2,973.59
Sell₹7,500,00030 Aug 18
Deepak Bagati
EntityIndividual
Role
President of Collections & SME Business
Shares2,550
Max Price₹2,941.18
Sell₹2,950,00028 Aug 18
C. V. N Murthy
EntityIndividual
Shares1,000
Max Price₹2,950.00
Sell₹69,839,43228 Aug 18
Atul Jain
EntityIndividual
Role
Chief Executive Officer of BHFL
Shares23,800
Max Price₹2,934.43
Sell₹8,752,59525 Aug 18
C. V. N Murthy
EntityIndividual
Shares3,000
Max Price₹2,932.50
Sell₹11,622,86025 Aug 18
Vivek Likhite
EntityIndividual
Shares4,000
Max Price₹2,905.71

Ownership Breakdown


Management Team

  • Rajeev Jain (49yo)

    MD & Executive Director

    • Tenure: 11.3yrs
    • Compensation: 212.64m
  • Manish Jain

    Business Head of Loan Against Security & Corporate Finance

  • Fakhari Sarjan

    Chief Risk Officer

    • Tenure: 0.1yrs
  • Deepak Bagati

    President of Collections & SME Business

    • Tenure: 2.1yrs
  • Anup Saha

    President of Consumer Business

    • Tenure: 2.1yrs
  • Ramachandran Vijay

    Company Secretary & Compliance Officer

    • Tenure: 0.8yrs
    • Compensation: 5.75m
  • Ashish Panchal (41yo)

    President of Rural

    • Tenure: 0.6yrs
  • Atul Jain

    Chief Executive Officer of BHFL

  • Sandeep Vijay Jain

    Chief Financial Officer

    • Tenure: 3.5yrs
    • Compensation: 36.88m
  • M. Muralidharan

    Treasurer


Board Members

  • Rajeev Jain (49yo)

    MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: 212.64m
  • Doveton Jagannathrao Rao (80yo)

    Non-Executive Independent Director

    • Tenure: 10.8yrs
    • Compensation: 1.20m
  • Ranjan Sanghi (75yo)

    Non-Executive Independent Director

    • Tenure: 32.4yrs
    • Compensation: 1.95m
  • Sanjiv Bajaj (50yo)

    Non-Executive Vice Chairman

    • Tenure: 6.6yrs
    • Compensation: 2.55m
  • Rajiv Bajaj (53yo)

    Non-Executive Director

    • Tenure: 25.3yrs
    • Compensation: 1.05m
  • Nanoo Pamnani (74yo)

    Non-Executive Independent Vice Chairman

    • Tenure: 12.3yrs
    • Compensation: 20.55m
  • Omkar Goswami (63yo)

    Non-Executive Independent Director

    • Tenure: 7.3yrs
    • Compensation: 1.80m
  • Dipak Kumar Poddar (76yo)

    Non-Executive Independent Director

    • Tenure: 32.4yrs
    • Compensation: 1.50m
  • Rahul Kumar Bajaj (81yo)

    Non Executive Chairman

    • Compensation: 1.35m
  • Madhur Bajaj (67yo)

    Non-Executive Director

    • Tenure: 29.3yrs
    • Compensation: 1.20m

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: ₹1.925t
  • Shares outstanding: 576.87m
  • Website: Click here

Number of Employees


Location

  • Bajaj Finance Limited
  • Bajaj Finserv Corporate Office
  • 4th Floor
  • Pune
  • Maharashtra
  • 411 014
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500034BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2000
BAJFINANCENSEI (National Stock Exchange of India)YesEquity SharesININRJun 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:42
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.