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Bajaj Finserv Ltd Stock Analysis

Large Cap
Evaluated by 3846 users | BSE: 532978 | NSE: BAJAJFINSV |
Finance - Investment

Bajaj Finserv (BFS) is the holding company under which there are three key financial sector businesses: (i) lending through Bajaj Finance (BFL), which is itself a listed company; (ii) general insurance, under Bajaj Allianz General Insurance Company (BAGIC);...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bajaj Finserv Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)1,5092,8364,1545,3837,09920,53324,50732,86242,60454,833
Y-o-Y Gr. Rt.-88%46.5%29.6%31.9%189.2%19.4%34.1%29.6%28.7%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
75.7190.8699.1797.04106.2117.08142.13166.54202.28211.71
Y-o-Y Gr. Rt.-20%9.2%-2.2%9.4%10.2%21.4%17.2%21.5%4.7%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
272.84361.86501.23596.73696.67854.11,014.091,287.11,491.771,966.9
Y-o-Y Gr. Rt.-32.6%38.5%19.1%16.8%22.6%18.7%26.9%15.9%31.9%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >12 : Very Good
  • 8-12 : Somewhat Good
  • <8: Not Good
Net Profit/Total Funds (%)3.153.343.553.142.972.92.982.892.922.62
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bajaj Finserv Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income49.1%50.5%30.8%28.7%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
12.1%14.8%14.2%4.7%
Book Value per Share
24.5%23.1%24.7%31.9%
Share Price 39.9% 35.1% 21.8% 1%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Margins
Net Profit Margin (%) 97.5166.6353.340.733.9413.5114.0812.7112.6110.93
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 44.2940.4433.2925.0823.4122.4923.2122.8124.321.78
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 60.80%
Institutions 14.54%
Non-Institutions 24.67%
Pledged *0.000.000.000.000.000.000.000.000.000.01
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bajaj Finserv Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bajaj Finserv Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Bajaj Finserv Ltd's performance infers:

Bajaj Finserv Ltd earnings have grown by 14.8%, whereas share price has appreciated 35.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Bajaj Finserv Ltd share prices over the last 10 years. Here is what we found out:

Bajaj Finserv Ltd share price has appreciated 34.3% annually over the past ten years.

Bajaj Finserv (BFS) is the holding company under which there are three key financial sector businesses: (i) lending through Bajaj Finance (BFL), which is itself a listed company; (ii) general insurance, under Bajaj Allianz General Insurance Company (BAGIC); and (iii) life insurance, under Bajaj Allianz Life Insurance Company (BALIC). It serves millions of customers by providing solutions for asset acquisition through financing, asset protection through general

Bajaj Finserv (BFS) is the holding company under which there are three key financial sector businesses: (i) lending through Bajaj Finance (BFL), which is itself a listed company; (ii) general insurance, under Bajaj Allianz General Insurance Company (BAGIC); and (iii) life insurance, under Bajaj Allianz Life Insurance Company (BALIC). It serves millions of customers by providing solutions for asset acquisition through financing, asset protection through general insurance, family and income protection in the form of life and health insurance and retirement and savings solutions. The insurance businesses are unlisted. In addition, there are wind farm assets in Maharashtra.

The company is a Core Investment Company (CIC) under the regulations of the Reserve Bank of India (RBI), not requiring registration with RBI. BFS and BFL adopted the Indian Accounting Standards (Ind AS) from 1 April 2018. Hence, the standalone and consolidated results of BFS for FY2019 are compliant with Ind AS. The financials for FY2018 have been restated to be Ind AS compliant and are, therefore, comparable.

Business area of the company

The company deals with financial services of the Bajaj Group. Its core businesses are spread across Lending, Insurance and Wealth Advisory.

Awards and Recognition

Sanjiv Bajaj, Managing Director & CEO, received the following awards:

  • Business World - India's Most Valuable CEOs in 2015 and 2016. 
  • Bombay Management Association (BMA) - Entrepreneur of the Year Award 2015-16.
  • Ernst & Young - EY Entrepreneur of the Year Award 2017. 
  • India Today- Top 50 Power List 2017-18.
  • Financial Express Best Banks Award 2019: Banker of the Year for 2017-18.
  • Asia Centre’s Leadership, Corporate Governance, Sustainability and CSR Awards: Transformation Leader Award (Large Cap Category) in 2018.
  • Entrepreneur of the Year India 2018 by AIMA.
  • Entrepreneur of the Year India 2018 by ET Awards, the most prestigious business awards in India.
  • Economic Times - ET Business Leader of the Year Award 2018.
  • Financial Express Best Banks Award: Banker of the Year 2019.
  • Entrepreneur of the Year India 2019 by All India Management Association (AIMA).

Key events:

  • FY09: Bajaj Finserv and Allianz Global investors sign shareholders agreement to set up an asset management joint venture company in India.
  • FY10: Bajaj Finserv (BFL) announces new brand identity and new businesses.
  • FY10: Bajaj Finserv forays into infrastructure Finance.
  • FY15: Bajaj Finserv is classified as a ‘core investment company’ as it does not have any public funds including deposits or borrowings.
  • FY15: Bajaj Allianz General Insurance Company Funds Maharashtra’s first dedicated multi-specialty Centre for Epilepsy care as part of its CSR.
  • FY15: Bajaj Finserv partners with SSBF as part of its CSR initiative.
  • FY20: Bajaj Group commits Rs 100 crore for the fight against covid-19.
  • FY20: Bajaj Finserv ties up with Narayana Nethralaya.
  • FY20: Bajaj Finserv offers honeymoon holiday cover.
  • FY20: Bajaj Finserv offers attractive discounts, coupon deals on Vivo Smartphones.
  • FY21: Bajaj Finserv launches a new health-tech venture - Bajaj Finserv Health.
  • FY21: Bajaj Finserv partners with Reliance Digital.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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