Bajaj Finance (BSE:500034) - Share price, News & Analysis

Q: What is the Fair Price of 500034 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

500034 (₹7316.25) is trading above our estimate of [[fair value]] (₹2000.35)

500034 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	6/6
Past Performance	5/6
Financial Health	3/6
Dividends	3/6

500034 Stock Overview

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

Rewards

Earnings are forecast to grow 24.69% per year

Earnings grew by 93.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Bajaj Finance Competitors

SBI Cards and Payment Services

BSE:543066

₹889.3b

Cholamandalam Investment and Finance

BSE:511243

₹638.8b

Muthoot Finance

NSEI:MUTHOOTFIN

₹470.5b

Shriram Transport Finance

BSE:511218

₹380.0b

Price History & Performance

Summary of all time highs, changes and price drops for Bajaj Finance
Historical stock prices
Current Share Price	₹7,316.25
52 Week High	₹8,043.50
52 Week Low	₹5,235.60
Beta	1.23
1 Month Change	24.57%
3 Month Change	32.66%
1 Year Change	18.04%
3 Year Change	122.46%
5 Year Change	323.19%
Change since IPO	232,901.59%

Shareholder Returns

	500034	IN Consumer Finance	IN Market
7D	-0.03%	0.8%	1.1%
1Y	18.0%	10.5%	8.5%

Return vs Industry: 500034 exceeded the Indian Consumer Finance industry which returned 9% over the past year.

Return vs Market: 500034 exceeded the Indian Market which returned 8.7% over the past year.

Price Volatility

Is 500034's price volatile compared to industry and market?
500034 volatility
500034 Average Weekly Movement	5.0%
Consumer Finance Industry Average Movement	6.4%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.1%
10% least volatile stocks in IN Market	4.2%

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.

About the Company

Founded	Employees	CEO	Website
1987	35,425	Rajeev Jain	https://www.bajajfinserv.in/corporate-bajaj-finance

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 equipment, vendor, light engineering, specialty chemicals, financial institution, corporate, and warehouse finance services; IPO and ESOP finance, margin trading finance, trading account, depository, and HNI and retail broking services; personal, gold, home, business, working capital, secured enterprise, and professional loans; and loan against fixed deposits, shares, properties, and securities. It also provides life, general, and health insurance, as well as pocket insurance products; extended warranty, e-commerce, and lease rental discounting services; financial fitness reports; and EMI cards, and co-branded credit cards and wallets, as well as offers investment services, such as systematic deposit plan, fixed and term deposits, and mutual funds.

Bajaj Finance Fundamentals Summary

How do Bajaj Finance's earnings and revenue compare to its market cap?
500034 fundamental statistics
Market Cap	₹4.41t
Earnings (TTM)	₹86.22b
Revenue (TTM)	₹202.33b

51.2x

P/E Ratio

21.8x

P/S Ratio

Is 500034 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
500034 income statement (TTM)
Revenue	₹202.33b
Cost of Revenue	₹20.16b
Gross Profit	₹182.17b
Other Expenses	₹95.95b
Earnings	₹86.22b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	142.92
Gross Margin	90.04%
Net Profit Margin	42.61%
Debt/Equity Ratio	308.9%

How did 500034 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

14%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 500034 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500034?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 500034. This is calculated by dividing 500034's market cap by their current preferred multiple.
What is 500034's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹4.41t

500034 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	2.1x

Price to Earnings Ratio vs Peers

How does 500034's PE Ratio compare to its peers?

500034 PE Ratio vs Peers

The above table shows the PE ratio for 500034 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.8x
543066 SBI Cards and Payment Services	45.9x	27.3%	₹889.3b
511243 Cholamandalam Investment and Finance	26.8x	17.2%	₹638.8b
MUTHOOTFIN Muthoot Finance	11.7x	11.4%	₹470.5b
511218 Shriram Transport Finance	10.8x	17.4%	₹380.0b
500034 Bajaj Finance	51.2x	24.7%	₹4.4t

Price-To-Earnings vs Peers: 500034 is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the peer average (23.8x).

Price to Earnings Ratio vs Industry

How does 500034's PE Ratio compare vs other companies in the IN Consumer Finance Industry?

Price-To-Earnings vs Industry: 500034 is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the Indian Consumer Finance industry average (22x)

Price to Earnings Ratio vs Fair Ratio

What is 500034's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500034 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	51.2x
Fair PE Ratio	30.3x

Price-To-Earnings vs Fair Ratio: 500034 is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the estimated Fair Price-To-Earnings Ratio (30.3x).

Share Price vs Fair Value

What is the Fair Price of 500034 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500034 (₹7316.25) is trading above our estimate of fair value (₹2000.35)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

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

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500034's forecast earnings growth (24.7% per year) is above the savings rate (6.8%).

Earnings vs Market: 500034's earnings (24.7% per year) are forecast to grow faster than the Indian market (18.8% per year).

High Growth Earnings: 500034's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500034's revenue (23.4% per year) is forecast to grow faster than the Indian market (10.8% per year).

High Growth Revenue: 500034's revenue (23.4% per year) is forecast to grow faster 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 (22.5%)

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Past Performance

How has Bajaj Finance performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 500034 has high quality earnings.

Growing Profit Margin: 500034's current net profit margins (42.6%) are higher than last year (38.6%).

Past Earnings Growth Analysis

Earnings Trend: 500034's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: 500034's earnings growth over the past year (93.3%) exceeds its 5-year average (18% per year).

Earnings vs Industry: 500034 earnings growth over the past year (93.3%) exceeded the Consumer Finance industry 18.5%.

Return on Equity

High ROE: 500034's Return on Equity (19.7%) is considered low.

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Financial Health

How is Bajaj Finance's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 500034's short term assets (₹2,063.8B) exceed its short term liabilities (₹849.9B).

Long Term Liabilities: 500034's short term assets (₹2,063.8B) exceed its long term liabilities (₹838.0B).

Debt to Equity History and Analysis

Debt Level: 500034's net debt to equity ratio (296.6%) is considered high.

Reducing Debt: 500034's debt to equity ratio has reduced from 471.4% to 308.9% 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

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.27%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 500034's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 500034's dividend (0.27%) is low compared to the top 25% of dividend payers in the Indian market (1.72%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14%), 500034's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 500034 is paying a dividend but the company has no free cash flows.

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Management

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

3.8yrs

Average management tenure

CEO

Rajeev Jain (52 yo)

14.33yrs

Tenure

₹141,700,000

Compensation

Mr. Rajeev A. Jain has been Vice Chairman of the Bajaj Housing Finance Ltd. since 2022. Mr. Jain was the Managing Director at Bajaj Housing Finance Ltd.He has been a Director at Bajaj Housing Finance Ltd...

CEO Compensation Analysis

Compensation vs Market: Rajeev's total compensation ($USD1.79M) is above average for companies of similar size in the Indian market ($USD1.34M).

Compensation vs Earnings: Rajeev's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 500034's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: 500034's board of directors are considered experienced (5.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31