Check Before You Invest : Bajaj Holdings & Investment Ltd

BSE: 500490 NSE: BAJAJHLDNG ISIN: INE118A01012

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Bajaj Holdings & Investment Ltd belong to?

Bajaj Holdings & Investment Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Bajaj Holdings & Investment Ltd a good quality company?

Bajaj Holdings & Investment Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Bajaj Holdings & Investment Ltd undervalued or overvalued?

Bajaj Holdings & Investment Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Bajaj Holdings & Investment Ltd a good buy now?

Bajaj Holdings & Investment Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Bajaj Holdings & Investment Ltd?

Bajaj Holdings & Investment Ltd Operating Income growth is -51.39% for FY-2025, which is below its 5-year CAGR of -6.91%, indicating slower growth.

Q.2 Return on Assets of Bajaj Holdings & Investment Ltd?

Bajaj Holdings & Investment Ltd Return on Asset is 6.5%, which is below its 5-year historical median of 10.6%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	85.4	91.28
PPOP%	-52.12	4.53
RoA%	6.5	10.6

Q.3 Return on Equity (ROE) of Bajaj Holdings & Investment Ltd?

Bajaj Holdings & Investment Ltd Return on Equity is 6.8% for FY-2025, which is below its 5-year historical median of 11%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Bajaj Holdings & Investment Ltd?

Bajaj Holdings & Investment Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -52.12% for FY-2025, which is below its 5-year median(4.53%), indicating decreasing margins.

Q.5 Net Profit Margin of Bajaj Holdings & Investment Ltd?

Bajaj Holdings & Investment Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 85.4% for FY-2025, which is below its 5-year median( 91.28%), indicating decreasing margins.

Q.6 Total Asset growth of Bajaj Holdings & Investment Ltd?

Bajaj Holdings & Investment Ltd Total Asset growth is 0.82% for FY-2025, which is below its 5-year CAGR of 12.79%, indicating slower growth.

Q.7 Capital Adequacy ratio of Bajaj Holdings & Investment Ltd?

Bajaj Holdings & Investment Ltd Capital Adequacy ratio (CAR) is 181.00% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bajaj Holdings & Investment Ltd?

Promoters hold 51.46% of the Bajaj Holdings & Investment Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Bajaj Holdings & Investment Ltd vs Industry Peers?

Bajaj Holdings & Investment Ltd AUM CAGR is 12.79%, compared to the 5-year industry median CAGR of 23.24%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Bajaj Holdings & Investment Ltd vs industry peers

Bajaj Holdings & Investment Ltd profit metrics are in line with the industry median level of 17.64%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	85.4	24.08
PPOP%	-52.12	25.73
RoA%	6.5	3.1

Q.3 Operating efficiency of Bajaj Holdings & Investment Ltd vs industry peers?

Bajaj Holdings & Investment Ltd ROCE (11.5) is above the industry median of (10.9); while the current ROE (11) are below than the 5-year average Industry ROE (15.6). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	85.4	24.08
PPOP%	-52.12	25.73
RoA%	6.5	3.1
ROCE%	7.4	10.9
ROE%	6.8	15.6

Valuation & price assessment

Q.1 Stock return of Bajaj Holdings & Investment Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 21.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	21.7%	24.6%	14.3%	-14.6%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.46	43.07	28.96
Price to Book	4.98	4.94	1.11
Price to Sales	35.78	43.00	9.10
EV to EBITDA	36.38	41.65	11.77

Q.4 Valuation ratios of Bajaj Holdings & Investment Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 4.98% is higher than its historical median of 4.94%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Bajaj Holdings & Investment Ltd return on invested capital (ROIC) is 6.77% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

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