NSEI:BAJAJFINSV

Stock Analysis Report

Executive Summary

Bajaj Finserv Limited, through its subsidiaries, provides financial services to salaried, SME, self-employed, and professional customers primarily in India.

Snowflake

Fundamentals

Acceptable track record and slightly overvalued.

Share Price & News

How has Bajaj Finserv's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

BAJAJFINSV

7.7%

IN Insurance

3.9%

IN Market


1 Year Return

52.5%

BAJAJFINSV

37.7%

IN Insurance

6.0%

IN Market

Return vs Industry: BAJAJFINSV exceeded the Indian Insurance industry which returned 37.7% over the past year.

Return vs Market: BAJAJFINSV exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

BAJAJFINSVIndustryMarket
7 Day1.2%7.7%3.9%
30 Day15.0%16.1%7.8%
90 Day9.2%18.0%2.5%
1 Year52.6%52.5%38.8%37.7%8.2%6.0%
3 Year152.6%152.4%36.9%28.3%23.0%16.7%
5 Year700.9%698.4%58.0%41.0%43.5%30.0%

Price Volatility Vs. Market

How volatile is Bajaj Finserv's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

40.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BAJAJFINSV (₹8265.95) is trading above our estimate of fair value (₹2970.61)

Significantly Undervalued: BAJAJFINSV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BAJAJFINSV is good value based on its PE Ratio (40.6x) compared to the Insurance industry average (52.7x).

PE vs Market: BAJAJFINSV is poor value based on its PE Ratio (40.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: BAJAJFINSV is poor value based on its PEG Ratio (7x)


Price to Book Ratio

PB vs Industry: BAJAJFINSV is good value based on its PB Ratio (5.5x) compared to the IN Insurance industry average (5.5x).


Next Steps

Future Growth

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

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAJAJFINSV's forecast earnings growth (5.8% per year) is below the savings rate (7.6%).

Earnings vs Market: BAJAJFINSV's earnings (5.8% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: BAJAJFINSV's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAJAJFINSV's revenue (16.5% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: BAJAJFINSV's revenue (16.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BAJAJFINSV's Return on Equity is forecast to be low in 3 years time (19.4%).


Next Steps

Past Performance

How has Bajaj Finserv performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BAJAJFINSV's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: BAJAJFINSV's earnings growth over the past year (8.6%) is below its 5-year average (15% per year).

Earnings vs Industry: BAJAJFINSV earnings growth over the past year (8.6%) exceeded the Insurance industry 2.2%.


Return on Equity

High ROE: BAJAJFINSV's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: BAJAJFINSV has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: BAJAJFINSV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bajaj Finserv'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: BAJAJFINSV has a low level of unsold assets or inventory.

Debt Coverage by Assets: BAJAJFINSV's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

0.03%

Current Dividend Yield


Dividend Yield vs Market

company0.03%marketbottom25%0.6%markettop25%2.4%industryaverage0.5%forecastin3Years0.03%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BAJAJFINSV's dividend (0.03%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BAJAJFINSV's dividend (0.03%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

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

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BAJAJFINSV'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 Finserv's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Sanjiv Bajaj (50yo)

11.7yrs

Tenure

₹79,223,109

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Sanjiv's total compensation ($USD1.11M) is about average for companies of similar size in the Indian market ($USD1.13M).

Compensation vs Earnings: Sanjiv's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: BAJAJFINSV's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

66yo

Average Age

Experienced Board: BAJAJFINSV's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹130,601,40922 Aug 19
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares18,350
Max Price₹7,117.24
Buy₹577,943,36814 Aug 19
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares80,075
Max Price₹7,217.53
Buy₹370,903,42513 Aug 19
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares50,000
Max Price₹7,418.07
Buy₹93,017,66007 Aug 19
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares13,351
Max Price₹6,967.09
Buy₹21,923,41302 Aug 19
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares3,149
Max Price₹6,962.02
Buy₹204,494,93311 Mar 19
Bajaj Sevashram Pvt. Ltd.
EntityCompany
Shares31,000
Max Price₹6,628.70
Sell₹267,109,99807 Feb 19
Sanjivnayan Bajaj
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares44,445
Max Price₹6,009.90
Buy₹87,233,69607 Feb 19
Sanjali Bajaj
EntityIndividual
Shares14,515
Max Price₹6,009.90
Buy₹91,440,62607 Feb 19
Siddhantnayan Bajaj
EntityIndividual
Shares15,215
Max Price₹6,009.90
Buy₹88,435,67607 Feb 19
Shefali Bajaj
EntityIndividual
Shares14,715
Max Price₹6,009.90
Buy₹2,866,75010 Dec 18
Kevin D'Sa
EntityIndividual
Shares500
Max Price₹5,733.50
Buy₹39,278,74507 Dec 18
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares6,764
Max Price₹5,807.03
Buy₹6,712,55331 Oct 18
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares1,273
Max Price₹5,273.02
Buy₹10,826,73030 Oct 18
Bajaj Finserv Esop Trust- Balic
EntityCompany
Shares2,000
Max Price₹5,413.36

Ownership Breakdown


Management Team

  • Sanjiv Bajaj (50yo)

    MD, CEO & Executive Director

    • Tenure: 11.7yrs
    • Compensation: ₹79.22m
  • Sonal Tiwari (40yo)

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹5.16m
  • Deepak Kumar Reddy (53yo)

    Group Head of Human Resources

    • Tenure: 0yrs
  • V. Rajagopalan (63yo)

    President of Legal & Taxation

    • Tenure: 0yrs
  • Sreeni Sreenivasan (58yo)

    Chief Financial Officer

    • Tenure: 5yrs
    • Compensation: ₹50.93m
  • Tarun Chugh

    MD & CEO of Bajaj Allianz Life Insurance

    • Tenure: 2.5yrs
  • Ganesh Mohan

    Group Head of Strategy

    • Tenure: 1.4yrs
  • S. Shinde (69yo)

    Head of Wind Mill Division

    • Tenure: 0yrs
  • Ajay Sathe

    Group Head of Customer Experience & CSR

    • Tenure: 1.4yrs
  • Anish Amin

    President of Group Assurance

    • Tenure: 0.7yrs

Board Members

  • Doveton Jagannathrao Rao (80yo)

    Independent Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: ₹1.50m
  • Sanjiv Bajaj (50yo)

    MD, CEO & Executive Director

    • Tenure: 11.7yrs
    • Compensation: ₹79.22m
  • Rajiv Bajaj (53yo)

    Non-Executive Director

    • Tenure: 12.5yrs
    • Compensation: ₹500.00k
  • Rahul Kumar Bajaj (81yo)

    Chairman Emeritus

    • Tenure: 0.4yrs
    • Compensation: ₹900.00k
  • Madhur Bajaj (67yo)

    Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: ₹600.00k
  • Naushad Forbes (59yo)

    Non-Executive Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹1.00m
  • Manish Kejriwal (51yo)

    Additional Non-Executive & Non-Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹200.00k
  • Nanoo Pamnani (74yo)

    Independent Non-Executive Chairman

    • Tenure: 0.4yrs
    • Compensation: ₹3.80m
  • Gita Piramal (65yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: ₹1.60m
  • Anami Roy (69yo)

    Additional Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹200.00k

Company Information

Bajaj Finserv Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bajaj Finserv Limited
  • Ticker: BAJAJFINSV
  • Exchange: NSEI
  • Founded: 2007
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: ₹1.315t
  • Shares outstanding: 159.14m
  • Website: https://www.bajajfinserv.in

Location

  • Bajaj Finserv Limited
  • Bajaj Finserv Corporate Office
  • 4th Floor
  • Pune
  • Maharashtra
  • 411014
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532978BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2008
BAJAJFINSVNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2008

Biography

Bajaj Finserv Limited, through its subsidiaries, provides financial services to salaried, SME, self-employed, and professional customers primarily in India. The company operates through Insurance, Windmill ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:50
End of Day Share Price2019/10/18 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.