Bajaj Finserv Ltd Stock Analysis

BSE: 532978 | NSE: BAJAJFINSV | Finance - Investment | Large Cap

BSE Share Price 23-Sep-2022 18:01
1722.25 -49.60 (-2.80%)

DeciZen - Make an Informed Decision on Bajaj Finserv

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Bajaj Finserv Price Chart

P/E Ratio (CD) :
54.45
Market Cap :
2,74,074.5 Cr.
52-wk low :
1,077.7
52-wk high :
1,932
Bole Toh?

1. Is Bajaj Finserv Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Bajaj Finserv Ltd is a good quality company.

2. Is Bajaj Finserv Ltd undervalued or overvalued?

The key valuation ratios of Bajaj Finserv Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Bajaj Finserv Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Bajaj Finserv Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Bajaj Finserv:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Operating Income (₹ Cr.)5,0716,0227,58720,53424,50732,86242,60454,83360,59168,40635,723
YoY Gr. Rt. %-18.7%26%170.7%19.4%34.1%29.6%28.7%10.5%12.9%-
Adj EPS (₹ ) 9.99.710.61114.215.920.221.228.128.631.6
YoY Gr. Rt. %--2.2%9.5%3.8%29%12.2%26.9%4.7%32.7%1.9%-
BVPS (₹ )50.159.769.785.4101.4128.7149.2196.7223.7250.5267.2
YoY Gr. Rt. %-19.1%16.8%22.6%18.7%26.9%15.9%31.9%13.7%12%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)3.63.132.932.92.92.62.82.70

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Net Interest Income33.5%22.8%17.1%12.9%
Adj EPS12.5%15%12.3%1.9%
BVPS19.6%19.8%18.9%12%
Share Price 35.6% 27.4% 27.8% -7%

Key Financial Ratios

RATIOS \ YEARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 9996180000000-
Margins
Net Profit Margin (%)43.736.431.813.514.112.712.610.912.212.214.1
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)33.325.123.422.523.222.824.321.8222211.8

Recent Performance Summary

Total Income has increased 17.10 CAGR in last 3 years

Net Profit has increased 12.27 CAGR in last 3 years

Total income growth is good in last 4 quarters

Return on Equity has declined versus last 3 years average to 12.20%

Latest Financials - Bajaj Finserv Ltd.

Standalone Consolidated
TTM EPS (₹) 4.1 31.6
TTM Sales (₹ Cr.) 908 35,723
BVPS (₹.) 28 267.2
Reserves (₹ Cr.) 4,303 42,368
P/BV 61.43 6.44
PE 417.22 54.45
From the Market
52 Week Low / High (₹) 1077.70 / 1931.99
All Time Low / High (₹) 8.71 / 1931.99
Market Cap (₹ Cr.) 2,74,074
Equity (₹ Cr.) 159.1
Face Value (₹) 1
Industry PE 84.7

Management X-Ray of Bajaj Finserv :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.010.010.010.000.010.010.010.01
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Bajaj Finserv

Adj EPS (Rs.)
Total Income (Cr.)
ROE (%)
BVPS (Rs.)

News

About Bajaj Finserv Ltd

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.
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