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BAJF

Bajaj FinanceNSEI:BAJFINANCE Stock Report

Market Cap

₹4.7t

7D

-1.9%

1Y

132.5%

Updated

22 Oct, 2021

Data

Company Financials +
BAJFINANCE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance2/6
Financial Health3/6
Dividends0/6

BAJFINANCE Overview

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

Bajaj Finance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Bajaj Finance
Historical stock prices
Current Share Price₹7,710.20
52 Week High₹3,236.65
52 Week Low₹8,050.00
Beta1.35
1 Month Change-1.07%
3 Month Change24.74%
1 Year Change132.45%
3 Year Change229.65%
5 Year Change618.87%
Change since IPO161,201.26%

Recent News & Updates

Shareholder Returns

BAJFINANCEIN Consumer FinanceIN Market
7D-1.9%-0.8%-3.1%
1Y132.5%90.6%61.1%

Return vs Industry: BAJFINANCE exceeded the Indian Consumer Finance industry which returned 88.5% over the past year.

Return vs Market: BAJFINANCE exceeded the Indian Market which returned 62.6% over the past year.

Price Volatility

Is BAJFINANCE's price volatile compared to industry and market?
BAJFINANCE volatility
BAJFINANCE Beta1.35
Industry Beta1.24
Market Beta1

Stable Share Price: BAJFINANCE is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BAJFINANCE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198728,546Rajeev Jainhttps://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 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?
BAJFINANCE fundamental statistics
Market Cap₹4.65t
Earnings (TTM)₹44.60b
Revenue (TTM)₹176.02b

104.0x

P/E Ratio

26.4x

P/S Ratio

Is BAJFINANCE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAJFINANCE income statement (TTM)
Revenue₹176.02b
Cost of Revenue₹14.28b
Gross Profit₹161.73b
Expenses₹117.13b
Earnings₹44.60b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)74.14
Gross Margin91.88%
Net Profit Margin25.34%
Debt/Equity Ratio288.0%

How did BAJFINANCE perform over the long term?

See historical performance and comparison

Dividends

0.1%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Bajaj Finance undervalued compared to its fair value and its price relative to the market?

104.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAJFINANCE (₹7710.2) is trading above our estimate of fair value (₹1182.46)

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


Price To Earnings Ratio

PE vs Industry: BAJFINANCE is poor value based on its PE Ratio (104x) compared to the Indian Consumer Finance industry average (23.3x).

PE vs Market: BAJFINANCE is poor value based on its PE Ratio (104x) compared to the Indian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: BAJFINANCE is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: BAJFINANCE is overvalued based on its PB Ratio (12.6x) compared to the IN Consumer Finance industry average (0.9x).


Future Growth

How is Bajaj Finance forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAJFINANCE's forecast earnings growth (25% per year) is above the savings rate (6.7%).

Earnings vs Market: BAJFINANCE's earnings (25% per year) are forecast to grow faster than the Indian market (19.1% per year).

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

Revenue vs Market: BAJFINANCE's revenue (20.6% per year) is forecast to grow faster than the Indian market (12.8% per year).

High Growth Revenue: BAJFINANCE's revenue (20.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAJFINANCE's Return on Equity is forecast to be high in 3 years time (21.2%)


Past Performance

How has Bajaj Finance performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAJFINANCE has high quality earnings.

Growing Profit Margin: BAJFINANCE's current net profit margins (25.3%) are lower than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: BAJFINANCE's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: BAJFINANCE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BAJFINANCE had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (5.7%).


Return on Equity

High ROE: BAJFINANCE's Return on Equity (12.1%) is considered low.


Financial Health

How is Bajaj Finance's financial position?


Financial Position Analysis

Short Term Liabilities: BAJFINANCE's short term assets (₹1,681.1B) exceed its short term liabilities (₹567.6B).

Long Term Liabilities: BAJFINANCE's short term assets (₹1,681.1B) exceed its long term liabilities (₹778.5B).


Debt to Equity History and Analysis

Debt Level: BAJFINANCE's debt to equity ratio (288%) is considered high.

Reducing Debt: BAJFINANCE's debt to equity ratio has reduced from 506.2% to 288% over the past 5 years.

Debt Coverage: BAJFINANCE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if BAJFINANCE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

0.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAJFINANCE's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: BAJFINANCE's dividend (0.13%) is low compared to the top 25% of dividend payers in the Indian market (1.38%).


Stability and Growth of Payments

Stable Dividend: BAJFINANCE is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: BAJFINANCE 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: BAJFINANCE is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BAJFINANCE'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?

4.3yrs

Average management tenure


CEO

Rajeev Jain (51 yo)

13.5yrs

Tenure

₹333,900,000

Compensation

Mr. Rajeev A. Jain is the Managing Director at Bajaj Housing Finance Ltd. He has been a Director at Bajaj Housing Finance Ltd. since November 10, 2014.He has been Managing Director and Executive Director...


CEO Compensation Analysis

Compensation vs Market: Rajeev's total compensation ($USD4.46M) is above average for companies of similar size in the Indian market ($USD1.13M).

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

Experienced Management: BAJFINANCE's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: BAJFINANCE's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BAJFINANCE insiders have only sold shares 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 employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Bajaj Finance Limited
  • Panchshil Tech Park
  • 3rd Floor
  • Pune
  • Maharashtra
  • 411 014
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:33
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.