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Bajaj Finserv

NSEI:BAJAJFINSV
Snowflake Description

Reasonable growth potential with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BAJAJFINSV
NSEI
₹1,205B
Market Cap
  1. Home
  2. IN
  3. Insurance
Company description

Bajaj Finserv Limited, through its subsidiaries, provides financial services to salaried, SME, and professional customers primarily in India. The last earnings update was 81 days ago. More info.


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BAJAJFINSV Share Price and Events
7 Day Returns
0.5%
NSEI:BAJAJFINSV
0.5%
IN Insurance
0.8%
IN Market
1 Year Returns
43.2%
NSEI:BAJAJFINSV
-4.9%
IN Insurance
-0.7%
IN Market
BAJAJFINSV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bajaj Finserv (BAJAJFINSV) 0.5% 8.9% 21.1% 43.2% 309.8% 827.6%
IN Insurance 0.5% 6.6% 9.4% -4.9% 64.8% 91.6%
IN Market 0.8% 2.1% 5.8% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • BAJAJFINSV outperformed the Insurance industry which returned -4.9% over the past year.
  • BAJAJFINSV outperformed the Market in India which returned -0.7% over the past year.
Price Volatility
BAJAJFINSV
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bajaj Finserv to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bajaj Finserv.

NSEI:BAJAJFINSV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= ₹1,957.37 * 17.8%
₹349.27
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. ₹1,957.37
Discount Rate (Cost of Equity) See below 16.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:BAJAJFINSV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.724 (1 + (1- 35%) (57.93%))
0.998
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.998 * 8.6%)
16.13%

Discounted Cash Flow Calculation for NSEI:BAJAJFINSV using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bajaj Finserv is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NSEI:BAJAJFINSV Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (17.8% – 16.13%) * ₹1,957.37)
₹33.50
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹33.50 / (16.13% - 7.55%)
₹390.37
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹1,957.37 + ₹390.37
₹2347.73
NSEI:BAJAJFINSV Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹2,347.73
Current discount Discount to share price of ₹7,571.15
= -1 x (₹7,571.15 - ₹2,347.73) / ₹2,347.73
-222.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Bajaj Finserv is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bajaj Finserv's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bajaj Finserv's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:BAJAJFINSV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹195.37
NSEI:BAJAJFINSV Share Price ** NSEI (2019-04-18) in INR ₹7571.15
India Insurance Industry PE Ratio Median Figure of 9 Publicly-Listed Insurance Companies 38.75x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bajaj Finserv.

NSEI:BAJAJFINSV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:BAJAJFINSV Share Price ÷ EPS (both in INR)

= 7571.15 ÷ 195.37

38.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bajaj Finserv is good value based on earnings compared to the IN Insurance industry average.
  • Bajaj Finserv is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Bajaj Finserv's expected growth come at a high price?
Raw Data
NSEI:BAJAJFINSV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
26.2%per year
India Insurance Industry PEG Ratio Median Figure of 8 Publicly-Listed Insurance Companies 2.67x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:BAJAJFINSV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.75x ÷ 26.2%

1.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bajaj Finserv is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bajaj Finserv's assets?
Raw Data
NSEI:BAJAJFINSV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹1,351.01
NSEI:BAJAJFINSV Share Price * NSEI (2019-04-18) in INR ₹7571.15
India Insurance Industry PB Ratio Median Figure of 9 Publicly-Listed Insurance Companies 5.6x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
NSEI:BAJAJFINSV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:BAJAJFINSV Share Price ÷ Book Value per Share (both in INR)

= 7571.15 ÷ 1,351.01

5.6x

* Primary Listing of Bajaj Finserv.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bajaj Finserv is good value based on assets compared to the IN Insurance industry average.
X
Value checks
We assess Bajaj Finserv's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Bajaj Finserv has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Bajaj Finserv expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bajaj Finserv expected to grow at an attractive rate?
  • Bajaj Finserv's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Bajaj Finserv's earnings growth is expected to exceed the India market average.
  • Bajaj Finserv's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:BAJAJFINSV Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:BAJAJFINSV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 26.2%
NSEI:BAJAJFINSV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 13.4%
India Insurance Industry Earnings Growth Rate Market Cap Weighted Average 17%
India Insurance Industry Revenue Growth Rate Market Cap Weighted Average 15.2%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:BAJAJFINSV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:BAJAJFINSV Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 464,085 57,835 1
2020-03-31 431,448 44,268 2
2019-03-31 354,010 35,555 2
NSEI:BAJAJFINSV Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 363,300 31,085
2018-09-30 331,938 29,885
2018-06-30 317,618 29,827
2018-03-31 305,263 -193,608 27,414
2017-12-31 287,632 25,909
2017-09-30 274,148 24,561
2017-06-30 258,689 23,795
2017-03-31 244,464 -109,222 22,619
2016-12-31 156,508 22,450
2016-09-30 147,960 20,685
2016-06-30 140,163 19,339
2016-03-31 205,077 -97,952 18,633

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bajaj Finserv's earnings are expected to grow significantly at over 20% yearly.
  • Bajaj Finserv's revenue is expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:BAJAJFINSV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Bajaj Finserv Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BAJAJFINSV Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 364.50 384.60 353.30 4.00
2020-03-31 277.52 307.10 232.89 7.00
2019-03-31 215.49 241.70 193.50 7.00
NSEI:BAJAJFINSV Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 195.37
2018-09-30 187.78
2018-06-30 187.48
2018-03-31 172.27
2017-12-31 162.84
2017-09-30 154.33
2017-06-30 149.49
2017-03-31 142.14
2016-12-31 141.10
2016-09-30 129.98
2016-06-30 121.59
2016-03-31 117.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bajaj Finserv is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bajaj Finserv's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bajaj Finserv has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Bajaj Finserv performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bajaj Finserv's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bajaj Finserv's year on year earnings growth rate has been positive over the past 5 years.
  • Bajaj Finserv's 1-year earnings growth exceeds its 5-year average (20% vs 14.1%)
  • Bajaj Finserv's earnings growth has not exceeded the IN Insurance industry average in the past year (20% vs 21.8%).
Earnings and Revenue History
Bajaj Finserv's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bajaj Finserv Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BAJAJFINSV Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 363,299.90 31,085.10 24,628.00
2018-09-30 331,938.10 29,884.90 21,809.00
2018-06-30 317,618.40 29,826.80 19,178.90
2018-03-31 305,263.40 27,414.40 17,050.20
2017-12-31 287,631.90 25,908.80 13,838.70
2017-09-30 274,148.30 24,560.50 12,583.00
2017-06-30 258,689.10 23,795.00 11,025.20
2017-03-31 244,464.20 22,619.20 10,998.40
2016-12-31 156,507.60 22,449.70 22,109.90
2016-09-30 147,960.10 20,685.00 21,514.60
2016-06-30 140,162.60 19,338.80 20,887.40
2016-03-31 205,076.60 18,632.70 7,900.40
2015-12-31 122,993.50 20,524.40 22,135.10
2015-09-30 118,085.40 19,625.20 21,249.90
2015-06-30 112,972.70 18,373.20 20,531.00
2015-03-31 108,131.50 16,897.90 15,973.50
2014-12-31 100,645.20 16,903.00 18,147.40
2014-09-30 95,489.00 16,240.40 17,548.00
2014-06-30 92,098.20 15,846.50 17,180.50
2014-03-31 88,515.80 15,440.80 16,709.40
2013-12-31 80,264.70 17,493.10 14,380.70
2013-09-30 77,535.40 17,169.10 13,978.00
2013-06-30 74,527.60 16,572.10 13,664.10
2013-03-31 71,087.20 15,736.40 14,046.30
2012-12-31 74,351.20 15,415.70 11,056.40
2012-09-30 71,404.80 14,629.20 10,860.60
2012-06-30 68,463.10 14,042.70 10,672.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bajaj Finserv has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bajaj Finserv used its assets more efficiently than the IN Insurance industry average last year based on Return on Assets.
  • Bajaj Finserv's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bajaj Finserv's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bajaj Finserv has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bajaj Finserv's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bajaj Finserv's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bajaj Finserv is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bajaj Finserv's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Bajaj Finserv's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bajaj Finserv Company Filings, last reported 3 months ago.

NSEI:BAJAJFINSV Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 329,532.80 697,914.10 16,197.20
2018-09-30 329,532.80 697,914.10 16,197.20
2018-06-30 317,941.10 647,190.30 58,367.10
2018-03-31 317,941.10 647,190.30 58,367.10
2017-12-31 293,757.80 520,588.10 54,260.20
2017-09-30 293,757.80 520,588.10 54,260.20
2017-06-30 230,296.00 482,820.40 56,943.50
2017-03-31 230,296.00 493,782.90 56,624.50
2016-12-31 209,224.20 419,148.70 35,796.10
2016-09-30 209,224.20 419,148.70 35,796.10
2016-06-30 192,678.00 360,774.70 44,634.20
2016-03-31 192,678.00 360,774.70 36,516.40
2015-12-31 178,749.30 311,356.60 26,315.10
2015-09-30 178,749.30 311,356.60 26,315.10
2015-06-30 151,901.80 264,016.60 31,374.50
2015-03-31 151,901.80 263,655.90 31,455.50
2014-12-31 137,261.10 243,268.90 31,524.10
2014-09-30 137,261.10 243,268.90 31,524.10
2014-06-30 128,526.60 195,085.10 29,492.80
2014-03-31 128,526.60 195,085.10 29,492.80
2013-12-31 114,601.20 165,421.60 22,829.00
2013-09-30 114,601.20 165,421.60 22,829.00
2013-06-30 107,004.00 135,550.20 22,897.90
2013-03-31 107,004.00 135,550.20 22,897.60
2012-12-31 76,556.40 131,312.00 13,265.70
2012-09-30 76,556.40 131,312.00 13,265.70
2012-06-30 69,197.90 104,138.20 20,848.50
  • Bajaj Finserv's level of debt (211.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (144.4% vs 211.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Bajaj Finserv's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bajaj Finserv has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.02%
Current annual income from Bajaj Finserv dividends. Estimated to be 0.04% next year.
If you bought ₹2,000 of Bajaj Finserv shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bajaj Finserv's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Bajaj Finserv's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:BAJAJFINSV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
India Insurance Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 0.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:BAJAJFINSV Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 3.84 3.00
2020-03-31 2.84 4.00
2019-03-31 3.31 2.00
NSEI:BAJAJFINSV Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-17 1.750 0.028
2017-07-19 1.750 0.034
2016-07-04 1.750 0.052
2016-05-24 1.750 0.089
2016-03-09 1.750 0.098
2015-05-20 1.750 0.098
2014-06-26 1.750 0.149
2014-05-14 1.750 0.194
2013-05-15 1.500 0.223
2012-09-06 1.500 0.181
2012-07-23 1.500 0.187
2012-07-17 1.500 0.211
2012-05-16 1.500 0.225
2011-05-17 1.250 0.237
2010-08-23 1.000 0.208
2009-06-01 1.000 0.285
2009-05-20 1.000 0.327
2009-04-21 1.000 0.422

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bajaj Finserv is not paying a notable dividend for India, therefore no need to check if the payments are stable.
  • Bajaj Finserv is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Bajaj Finserv's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Bajaj Finserv's dividends as it is not paying a notable one for India.
Future Payout to shareholders
  • No need to calculate the sustainability of Bajaj Finserv's dividends in 3 years as they are not expected to pay a notable one for India.
X
Income/ dividend checks
We assess Bajaj Finserv's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bajaj Finserv afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bajaj Finserv has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sanjiv Bajaj
COMPENSATION ₹50,225,887
AGE 49
TENURE AS CEO 11.2 years
CEO Bio

Mr. Sanjivnayan Rahulkumar Bajaj, also known as Sanjiv, has been the Managing Director and CEO of Bajaj Holdings & Investment Limited since April 1, 2012. Mr. Bajaj serves as the Joint Managing Director of Bajaj Capital, Ltd. He has been Managing Director of Bajaj Finserv Ltd. since February 20, 2008. He served as the Chief Executive Officer of Bajaj Finserv Ltd. He served as Vice President of Finance at Bajaj Holdings & Investment Limited since April 2001. He has been the Chairman of Bajaj Allianz General Insurance Co. Ltd since April 01, 2013. He serves as Chairman of Allianz Life Insurance Company Limited. He has been Non-Executive Vice Chairman of Bajaj Finance Ltd., since October 15, 2013. Mr. Bajaj has been an Executive Director of Bajaj Holdings & Investment Limited since April 1, 2012. He has been Non-Executive Nominee Director of Maharashtra Scooters Limited since October 18, 2006. He has been a Non-Executive director of Bajaj Auto Limited since April 1, 2012. He serves as a Director of Bajaj Allianz General Insurance Co. Ltd., Insurance Brokers Association of India. He serves as a Director of Bajaj Allianz Life Insurance Company Ltd. since March 12, 2001. He has been an Executive Director of Bajaj Finserv Ltd., since May 2, 2007. He serves as a Director of Jeewan Ltd. He serves as a Non-Executive Director of Bajaj Finance Ltd. He served as Director of Hindustan Housing Co. Ltd., since January 15, 2009 until January 17, 2018. He served as an Executive Director of Bajaj Finance Ltd (also known as Bajaj Auto Finance Ltd.) from April 2004 to April 1, 2012. He served as a Non-Executive Director at Bajaj Holdings & Investment Limited from February 20, 2008 to March 31, 2012. He served as an Executive Director of Bajaj Holdings & Investment Limited from April 13, 2004 to February 20, 2008. Mr. Bajaj received a B.E in Mechanical Engineering, first class with distinction from the University of Pune, an M.Sc in Manufacturing Systems Engg with distinction from the University of Warwick, UK and an MBA from Harvard University, USA.

CEO Compensation
  • Sanjiv's compensation has been consistent with company performance over the past year.
  • Sanjiv's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Bajaj Finserv management team in years:

1.5
Average Tenure
54.5
Average Age
  • The average tenure for the Bajaj Finserv management team is less than 2 years, this suggests a new team.
Management Team

Sanjiv Bajaj

TITLE
MD, CEO & Executive Director
COMPENSATION
₹50M
AGE
49
TENURE
11.2 yrs

Sreeni Sreenivasan

TITLE
Chief Financial Officer
COMPENSATION
₹37M
AGE
57
TENURE
4.5 yrs

Sonal Tiwari

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹4M
AGE
39

V. Rajagopalan

TITLE
President of Legal & Taxation
AGE
62

Deepak Kumar Reddy

TITLE
Group Head of Human Resources
AGE
52

S. Shinde

TITLE
Head of Wind Mill Division
AGE
68

Tarun Chugh

TITLE
MD & CEO of Bajaj Allianz Life Insurance
TENURE
2 yrs

Ajay Sathe

TITLE
Head of Group Risk Management
TENURE
0.9 yrs

Ganesh Mohan

TITLE
Group Head of Strategy
TENURE
0.9 yrs

Anish Amin

TITLE
President of Group Assurance
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the Bajaj Finserv board of directors in years:

6.9
Average Tenure
65
Average Age
  • The tenure for the Bajaj Finserv board of directors is about average.
Board of Directors

Rahul Kumar Bajaj

TITLE
Chairman
COMPENSATION
₹900K
AGE
80

Sanjiv Bajaj

TITLE
MD, CEO & Executive Director
COMPENSATION
₹50M
AGE
49
TENURE
11.9 yrs

Nanoo Pamnani

TITLE
Vice Chairman
COMPENSATION
₹1M
AGE
73

Gita Piramal

TITLE
Independent Non-Executive Director
COMPENSATION
₹1M
AGE
64
TENURE
5.1 yrs

Madhur Bajaj

TITLE
Non-Executive Director
COMPENSATION
₹600K
AGE
66
TENURE
8.8 yrs

Rajiv Bajaj

TITLE
Non-Executive Director
COMPENSATION
₹400K
AGE
52
TENURE
12 yrs

Doveton Jagannathrao Rao

TITLE
Independent Non-Executive Director
COMPENSATION
₹1M
AGE
79
TENURE
11.3 yrs

Manish Kejriwal

TITLE
Additional Non-Executive & Non-Independent Director
AGE
50
TENURE
0.3 yrs

Naushad Forbes

TITLE
Non-Executive Independent Director
COMPENSATION
₹500K
AGE
58
TENURE
1.6 yrs

Anami Roy

TITLE
Additional Independent Director
AGE
68
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Information is not available.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
11. Mar 19 Buy Bajaj Sevashram Pvt. Ltd. Company 07. Mar 19 08. Mar 19 31,000 ₹6,628.70 ₹204,494,933
07. Feb 19 Buy Shefali Bajaj Individual 05. Feb 19 05. Feb 19 14,715 ₹6,009.90 ₹88,435,676
07. Feb 19 Buy Siddhantnayan Bajaj Individual 05. Feb 19 05. Feb 19 15,215 ₹6,009.90 ₹91,440,626
07. Feb 19 Buy Sanjali Bajaj Individual 05. Feb 19 05. Feb 19 14,515 ₹6,009.90 ₹87,233,696
07. Feb 19 Sell Sanjivnayan Bajaj Individual 05. Feb 19 05. Feb 19 -44,445 ₹6,009.90 ₹-267,109,998
10. Dec 18 Buy Kevin D'Sa Individual 07. Dec 18 07. Dec 18 500 ₹5,733.50 ₹2,866,750
07. Dec 18 Buy Bajaj Finserv Esop Trust- Balic Company 07. Dec 18 07. Dec 18 6,764 ₹5,807.03 ₹39,278,745
31. Oct 18 Buy Bajaj Finserv Esop Trust- Balic Company 31. Oct 18 31. Oct 18 1,273 ₹5,273.02 ₹6,712,553
30. Oct 18 Buy Bajaj Finserv Esop Trust- Balic Company 29. Oct 18 29. Oct 18 2,000 ₹5,413.36 ₹10,826,730
11. Sep 18 Buy Bajaj Finserv Esop Trust- Balic Company 10. Sep 18 10. Sep 18 8,158 ₹6,384.80 ₹52,087,158
10. Sep 18 Buy Bajaj Finserv Esop Trust- Balic Company 03. Sep 18 04. Sep 18 12,405 ₹6,550.29 ₹81,256,335
06. Sep 18 Buy Kevin D'Sa Individual 04. Sep 18 04. Sep 18 200 ₹6,551.02 ₹1,310,203
03. Sep 18 Buy Bajaj Finserv Esop Trust- Balic Company 31. Aug 18 31. Aug 18 5,905 ₹6,797.00 ₹40,136,309
03. Sep 18 Buy Bajaj Finserv Esop Trust- Bagic Company 31. Aug 18 31. Aug 18 4,095 ₹6,794.63 ₹27,824,007
28. Jun 18 Buy Kevin D'Sa Individual 19. Jun 18 19. Jun 18 200 ₹6,004.89 ₹1,200,979
X
Management checks
We assess Bajaj Finserv's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bajaj Finserv has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

With A Return On Equity Of 15%, Has Bajaj Finserv Limited's (NSE:BAJAJFINSV) Management Done Well?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Bajaj Finserv Limited's (NSE:BAJAJFINSV) CEO Salary Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … At the time of writing our data says that Bajaj Finserv Limited has a market cap of ₹856.2b, and is paying total annual CEO compensation of ₹50m. … When we examined a group of companies with market caps over ₹587.2b, we found that their median CEO compensation was ₹90m.

Simply Wall St -

Who Are Bajaj Finserv Limited's (NSE:BAJAJFINSV) Major Shareholders?

I am going to take a deep dive into Bajaj Finserv Limited’s (NSE:BAJAJFINSV) most recent ownership structure, not a frequent subject of discussion among individual investors. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Therefore, it is beneficial for us to examine BAJAJFINSV's ownership structure in more detail.

Simply Wall St -

Should You Be Tempted To Buy Bajaj Finserv Limited (NSE:BAJAJFINSV) At Its Current PE Ratio?

While this makes BAJAJFINSV appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … Breaking down the Price-Earnings ratio

Simply Wall St -

Should Bajaj Finserv Limited's (NSE:BAJAJFINSV) Recent Earnings Worry You?

Analyzing Bajaj Finserv Limited's (NSE:BAJAJFINSV) track record of past performance is a valuable exercise for investors. … Today I will assess BAJAJFINSV's recent performance announced on 31 March 2018 and compare these figures to its long-term trend and industry movements. … How Did BAJAJFINSV's Recent Performance Stack Up Against Its Past.

Simply Wall St -

Will Bajaj Finserv Limited (NSE:BAJAJFINSV) Continue To Underperform Its Industry?

and looking to gauge the potential return on investment in Bajaj Finserv Limited (NSE:BAJAJFINSV). … Bajaj Finserv Limited (NSE:BAJAJFINSV) delivered an ROE of 13.65% over the past 12 months, which is relatively in-line with its industry average of 14.99% during the same period. … But what is more interesting is whether BAJAJFINSV can sustain or improve on this level of return

Simply Wall St -

Bajaj Finserv Limited (NSE:BAJAJFINSV): Is Now A Good Time To Buy?

Bajaj Finserv Limited (NSE:BAJAJFINSV) is considered a high-growth stock, but its last closing price of ₹6074.8 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … See our latest analysis for Bajaj Finserv? … Bajaj Finserv is poised for extremely high earnings growth in the near future

Simply Wall St -

How Do Analysts See Bajaj Finserv Limited (NSE:BAJAJFINSV) Performing In The Next Couple Of Years?

Below is a brief commentary on my key takeaways on how market analysts perceive Bajaj Finserv's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for Bajaj Finserv Market analysts' prospects for this coming year seems optimistic, with earnings climbing by a robust 29.41%. … This means, we can expect Bajaj Finserv will grow its earnings by 23.28% every year for the next couple of years.

Simply Wall St -

Where Bajaj Finserv Limited (NSE:BAJAJFINSV) Stands In Terms Of Earnings Growth Against Its Industry

After looking at Bajaj Finserv Limited's (NSEI:BAJAJFINSV) latest earnings announcement (31 December 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … See our latest analysis for Bajaj Finserv Did BAJAJFINSV beat its long-term earnings growth trend and its industry? … Since these values are fairly nearsighted, I have created an annualized five-year value for BAJAJFINSV's earnings, which stands at ₹17.78B This suggests that, generally, Bajaj Finserv has been able to steadily improve its net income over the past couple of years as well.

Simply Wall St -

Who Just Ramped Up Their Shares In Bajaj Finserv Limited (NSE:BAJAJFINSV)?

Bajaj Finserv is one of India’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in 128,960 shares during this period. … In the past three months, Bajaj Finserv’s share price reached a high of ₹5561.3 and a low of ₹4812.35. … Next Steps: Bajaj Finserv’s insider meaningful buying activity tells us the shares are currently in favour, reinforced by the substantial earnings growth expectations, even if the low share price volatility did not warrant exploiting any mispricing.

Simply Wall St -

Company Info

Description

Bajaj Finserv Limited, through its subsidiaries, provides financial services to salaried, SME, and professional customers primarily in India. The company operates through Insurance, Windmill, Retail Financing, and Investments and Others segments. It offers personal, business, home, and gold loans; 2 and 3 wheeler finance; loans against fixed deposit, shares, property, and car; and lease rental discounting products. The company also provides investment product, such as fixed deposits and mutual funds; and health, life, child plan, car, protection plan, investment plan, home, retirement, and savings plan insurance products. In addition, it offers value added services, including extended warranty, asset care, and financial fitness report services; and credit cards and wallets. Further, it operates 138 windmills with an installed capacity of approximately 65.2 MW in Maharashtra. Bajaj Finserv Limited was incorporated in 2007 and is based in Pune, India.

Details
Name: Bajaj Finserv Limited
BAJAJFINSV
Exchange: NSEI
Founded: 2007
₹1,204,810,576,147
159,131,780
Website: http://www.bajajfinserv.in
Address: Bajaj Finserv Limited
Bajaj Finserv Corporate Office,
6th Floor,
Pune,
Maharashtra, 411014,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI BAJAJFINSV Equity Shares National Stock Exchange of India IN INR 26. May 2008
BSE 532978 Equity Shares Mumbai Stock Exchange IN INR 26. May 2008
Number of employees
Current staff
Staff numbers
0
Bajaj Finserv employees.
Industry
Multi-line Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 12:48
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/01/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.