BSE:500034

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: 500034 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

500034

-1.4%

IN Consumer Finance

-1.1%

IN Market


1 Year Return

56.9%

500034

35.0%

IN Consumer Finance

7.3%

IN Market

Return vs Industry: 500034 exceeded the Indian Consumer Finance industry which returned 35.3% over the past year.

Return vs Market: 500034 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

500034IndustryMarket
7 Day-2.1%-1.4%-1.1%
30 Day-0.2%0.5%1.5%
90 Day3.6%4.9%5.1%
1 Year57.2%56.9%35.9%35.0%9.3%7.3%
3 Year315.4%312.9%124.6%119.8%28.9%22.0%
5 Year911.7%898.5%223.0%208.7%33.1%21.0%

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 compared to its fair value and its price relative to the market?

48.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500034 (₹4206.2) is trading above our estimate of fair value (₹1134.74)

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 (49.2x) compared to the Consumer Finance industry average (14.6x).

PE vs Market: 500034 is poor value based on its PE Ratio (49.2x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 500034 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 500034 is overvalued based on its PB Ratio (11x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is Bajaj Finance forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500034's forecast earnings growth (25.6% per year) is above the savings rate (6.5%).

Earnings vs Market: 500034's earnings (25.6% per year) are forecast to grow faster than the Indian market (19.8% per year).

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

Revenue vs Market: 500034's revenue (25.6% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: 500034's revenue (25.6% 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 (21.8%)


Next Steps

Past Performance

How has Bajaj Finance performed over the past 5 years?

29.4%

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 (34.6%) are higher than last year (34.2%).


Past Earnings Growth Analysis

Earnings Trend: 500034's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: 500034's earnings growth over the past year (46.3%) exceeds its 5-year average (29.4% per year).

Earnings vs Industry: 500034 earnings growth over the past year (46.3%) exceeded the Consumer Finance industry 17.3%.


Return on Equity

High ROE: Whilst 500034's Return on Equity (22.35%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bajaj Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 500034 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500034's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: 500034's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 500034 has a sufficient allowance for bad loans.

Low Risk Liabilities: 500034 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 500034 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 500034 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 500034 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.14%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%0.6%markettop25%2.3%industryaverage0.5%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: 500034's dividend (0.14%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 500034's dividend (0.14%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


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

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

2.5yrs

Average management tenure


CEO

Rajeev Jain (49yo)

11.8yrs

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 ($USD3.00M) is above average for companies of similar size in the Indian market ($USD1.12M).

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


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: 500034's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

12.7yrs

Average Tenure

70.5yo

Average Age

Experienced Board: 500034's board of directors are seasoned and experienced ( 12.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell₹10,629,10031 Dec 19
Manish Jain
EntityIndividual
Shares2,500
Max Price₹4,251.64
Sell₹1,393,00005 Dec 19
Rajib Bhowmick
EntityIndividual
Shares350
Max Price₹3,980.00
Sell₹2,456,76005 Nov 19
Rishi Kapil
EntityIndividual
Shares600
Max Price₹4,094.60
Sell₹232,519,73530 Oct 19
Suresh Subramaniam
EntityIndividual
Shares57,653
Max Price₹4,033.09
Sell₹28,042,00028 Oct 19
Suresh Subramaniam
EntityIndividual
Shares7,000
Max Price₹4,006.00
Sell₹20,250,00130 Sep 19
Anup Saha
EntityIndividual
Role
Senior Key Executive
President of Consumer Business
Shares5,000
Max Price₹4,050.00
Sell₹4,070,00028 Sep 19
Dilip Kamble
EntityIndividual
Shares1,000
Max Price₹4,070.00
Sell₹40,394,19928 Sep 19
Anurag Chottani
EntityIndividual
Shares10,000
Max Price₹4,039.42
Sell₹763,92827 Sep 19
Mohd Javed
EntityIndividual
Shares205
Max Price₹3,928.37
Sell₹6,000,00027 Sep 19
Raul Verma
EntityIndividual
Shares1,500
Max Price₹4,000.00
Sell₹4,000,00027 Sep 19
Vivek Likhite
EntityIndividual
Shares1,000
Max Price₹4,000.00
Sell₹38,932,30127 Sep 19
Shri Bhaskar
EntityIndividual
Shares10,000
Max Price₹3,893.23
Sell₹26,865,72224 Sep 19
Manish Jain
EntityIndividual
Shares7,000
Max Price₹3,837.97
Sell₹35,259,12124 Sep 19
Vivek Likhite
EntityIndividual
Shares9,000
Max Price₹3,917.68
Sell₹13,685,32021 Sep 19
Anurag Chottani
EntityIndividual
Shares4,000
Max Price₹3,421.33
Sell₹23,232,95121 Sep 19
Raul Verma
EntityIndividual
Shares6,500
Max Price₹3,706.00
Buy₹2,803,75826 Aug 19
Nikhil Patil
EntityIndividual
Shares850
Max Price₹3,343.03
Sell₹4,969,20026 Aug 19
Rajib Bhowmick
EntityIndividual
Shares1,515
Max Price₹3,280.00
Buy₹5,000,41519 Aug 19
Dipak Poddar
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares1,500
Max Price₹3,333.61
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₹4,826,14502 Aug 19
Dipak Poddar
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares1,500
Max Price₹3,217.43
Buy₹1,483,08802 Aug 19
Nikhil Patil
EntityIndividual
Shares458
Max Price₹3,247.04
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₹7,135,00021 Jun 19
C. V. N Murthy
EntityIndividual
Shares2,000
Max Price₹3,567.50
Sell₹10,840,57221 Jun 19
M. Muralidharan
EntityIndividual
Role
Treasurer
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₹7,049,52018 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
Senior Key Executive
President of Collections & SME Business
Shares10
Max Price₹3,518.12
Sell₹14,248,38512 Jun 19
Deepak Bagati
EntityIndividual
Role
Senior Key Executive
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₹9,895,11611 Jun 19
Sandeep Vijay Jain
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,800
Max Price₹3,533.97
Sell₹1,768,89011 Jun 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Treasurer
Shares500
Max Price₹3,537.78
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₹5,974,48904 Jun 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Treasurer
Shares1,700
Max Price₹3,541.14
Sell₹10,961,90404 Jun 19
Rajib Bhowmick
EntityIndividual
Shares3,225
Max Price₹3,399.04
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
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₹5,979,15427 May 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Treasurer
Shares1,725
Max Price₹3,471.54
Sell₹34,594,49827 May 19
Manish Jain
EntityIndividual
Shares10,000
Max Price₹3,459.45
Sell₹3,470,00027 May 19
Atul Jain
EntityIndividual
Role
Unit CEO
Chief Executive Officer of BHFL
Shares1,000
Max Price₹3,470.00
Sell₹103,181,50624 May 19
Ashish Sapra
EntityIndividual
Shares29,950
Max Price₹3,461.22
Sell₹33,674,62923 May 19
Raul Verma
EntityIndividual
Shares9,719
Max Price₹3,500.00
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
Unit CEO
Chief Executive Officer of BHFL
Shares1,000
Max Price₹3,515.00
Sell₹3,444,00023 May 19
Manish Jain
EntityIndividual
Shares1,000
Max Price₹3,444.00
Sell₹1,762,67723 May 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Treasurer
Shares511
Max Price₹3,451.37
Sell₹27,770,13423 May 19
Vivek Likhite
EntityIndividual
Shares8,000
Max Price₹3,508.33
Sell₹2,411,50921 May 19
Hemen Shah
EntityIndividual
Shares700
Max Price₹3,475.00
Sell₹6,849,56421 May 19
C. V. N Murthy
EntityIndividual
Shares2,000
Max Price₹3,475.00
Sell₹6,809,70721 May 19
Manish Jain
EntityIndividual
Shares2,000
Max Price₹3,426.40
Sell₹17,044,21121 May 19
Atul Jain
EntityIndividual
Role
Unit CEO
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₹26,538,66921 May 19
Amit Raghuvanshi
EntityIndividual
Shares7,780
Max Price₹3,411.14
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
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₹8,877,57130 Mar 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Treasurer
Shares2,950
Max Price₹3,023.80
Sell₹10,250,51230 Mar 19
Vivek Likhite
EntityIndividual
Shares3,400
Max Price₹3,014.86
Sell₹26,429,99928 Mar 19
Atul Jain
EntityIndividual
Role
Unit CEO
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
Treasurer
Shares5,900
Max Price₹2,981.12
Sell₹10,755,29920 Mar 19
M. Muralidharan
EntityIndividual
Role
Treasurer
Treasurer
Shares3,650
Max Price₹2,952.48
Sell₹2,828,00015 Mar 19
C. V. N Murthy
EntityIndividual
Shares1,000
Max Price₹2,828.00
Sell₹5,597,30015 Mar 19
Raul Verma
EntityIndividual
Shares2,000
Max Price₹2,798.65
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₹3,019,20013 Feb 19
Anand Kumar
EntityIndividual
Shares1,110
Max Price₹2,720.00
Sell₹6,800,00013 Feb 19
Anurag Chottani
EntityIndividual
Shares2,500
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
Chief Executive Officer
MD & Executive Director
Shares167,954
Max Price₹2,608.55
Sell₹13,100,00004 Feb 19
Anurag Chottani
EntityIndividual
Shares5,000
Max Price₹2,620.00

Ownership Breakdown

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


Management Team

  • Rajeev Jain (49yo)

    MD & Executive Director

    • Tenure: 11.8yrs
    • Compensation: ₹212.64m
  • Ashish Panchal (41yo)

    President of Rural

    • Tenure: 1yrs
  • Atul Jain

    Chief Executive Officer of BHFL

    • M. Muralidharan

      Treasurer

      • Deepak Bagati

        President of Collections & SME Business

        • Tenure: 2.5yrs
      • Sandeep Vijay Jain

        Chief Financial Officer

        • Tenure: 3.9yrs
        • Compensation: ₹36.88m
      • Manish Jain

        Business Head of Loan Against Security & Corporate Finance

        • Anup Saha

          President of Consumer Business

          • Tenure: 2.5yrs
        • Ramachandran Vijay

          Company Secretary & Compliance Officer

          • Tenure: 1.3yrs
          • Compensation: ₹5.75m
        • Fakhari Sarjan

          Chief Risk Officer

          • Tenure: 0.5yrs

        Board Members

        • Omkar Goswami (63yo)

          Non-Executive Independent Director

          • Tenure: 7.7yrs
          • Compensation: ₹1.80m
        • Dipak Poddar (76yo)

          Non-Executive Independent Director

          • Tenure: 32.8yrs
          • Compensation: ₹1.50m
        • Doveton Jagannathrao Rao (80yo)

          Non-Executive Independent Director

          • Tenure: 11.3yrs
          • Compensation: ₹1.20m
        • Sanjiv Bajaj (50yo)

          Non-Executive Vice Chairman

          • Tenure: 7yrs
          • Compensation: ₹2.55m
        • Rajiv Bajaj (53yo)

          Non-Executive Director

          • Tenure: 25.7yrs
          • Compensation: ₹1.05m
        • Rahul Kumar Bajaj (81yo)

          Non Executive Chairman

          • Compensation: ₹1.35m
        • Rajeev Jain (49yo)

          MD & Executive Director

          • Tenure: 11.8yrs
          • Compensation: ₹212.64m
        • Madhur Bajaj (67yo)

          Non-Executive Director

          • Tenure: 29.7yrs
          • Compensation: ₹1.20m
        • Nanoo Pamnani (74yo)

          Non-Executive Independent Vice Chairman

          • Tenure: 12.7yrs
          • Compensation: ₹20.55m
        • Ranjan Sanghi (75yo)

          Non-Executive Independent Director

          • Tenure: 32.8yrs
          • Compensation: ₹1.95m

        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: ₹2.482t
        • 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

        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, 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

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 12:44
        End of Day Share Price2020/01/23 00:00
        Earnings2019/09/30
        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.