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Bajaj Finance Ltd. Stock Analysis

Large Cap
Evaluated by 6232 users | BSE: 500034 | NSE: BAJFINANCE |
Finance - NBFC
Bajaj Auto Finance (BAFL), incorporated in 1987, is engaged in business of retail financing. Earlier BAFL was promoted by Bajaj Auto and Bajaj Auto Holdings. Bajaj Auto is the second largest manufacturer of two- and three-wheelers in the India. Bajaj Auto Holdings is an investment company.In...
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 Finance 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.)1,3922,1633,0924,0325,3827,2949,96312,65317,38623,823
Y-o-Y Gr. Rt.-55.4%43%30.4%33.5%35.5%36.6%27%37.4%37%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
6.559.5611.9414.4517.9623.8833.5843.267.4481.36
Y-o-Y Gr. Rt.-46%24.9%21%24.3%33%40.6%28.7%56.1%20.6%
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
36.0247.3167.6680.2295.99136.78175.56273.58336.76526.71
Y-o-Y Gr. Rt.-31.3%43%18.6%19.7%42.5%28.4%55.8%23.1%56.4%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)3.743.813.873.312.993.063.163.364.123.98
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 Finance Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income37.1%34.7%33.7%37%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
32.3%35.3%34.3%20.6%
Book Value per Share
34.7%40.6%44.2%56.4%
Share Price 54.4% 43.8% 20.9% -21.1%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0.80.120.190.280.450.280.440.380.630.65
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)2017.521.9519.1417.9719.520.324.7120.6625
Margins
Net Profit Margin (%) 17.7418.7919.1217.8316.6817.5318.4319.6422.3820.49
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 (%) 19.6724.1222.0519.5820.4321.0921.719.6122.1319.13
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 56.20%
Institutions 31.35%
Non-Institutions 12.22%
Others 0.22%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

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

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

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

Bajaj Finance Ltd. earnings have grown by 35.3%, whereas share price has appreciated 43.8% 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 Finance Ltd. share prices over the last 10 years. Here is what we found out:

Bajaj Finance Ltd. share price has appreciated 46% annually over the past ten years.

Bajaj Auto Finance (BAFL), incorporated in 1987, is engaged in business of retail financing. Earlier BAFL was promoted by Bajaj Auto and Bajaj Auto Holdings. Bajaj Auto is the second largest manufacturer of two- and three-wheelers in the India. Bajaj Auto Holdings is an investment company.In 2010 Bajaj Auto Finance changed its name from Bajaj Auto Finance Ltd to BAJAJ FINANCE LTD

As per the scheme of de-merger of erstwhile Bajaj Auto, the stakes held by Bajaj Auto in BAFL were

Bajaj Auto Finance (BAFL), incorporated in 1987, is engaged in business of retail financing. Earlier BAFL was promoted by Bajaj Auto and Bajaj Auto Holdings. Bajaj Auto is the second largest manufacturer of two- and three-wheelers in the India. Bajaj Auto Holdings is an investment company.In 2010 Bajaj Auto Finance changed its name from Bajaj Auto Finance Ltd to BAJAJ FINANCE LTD

As per the scheme of de-merger of erstwhile Bajaj Auto, the stakes held by Bajaj Auto in BAFL were transferred to Bajaj Finserv. Currently Bajaj Auto Finance is subsidiary of Bajaj Finserv.

Today BAFL is a non-banking financial company that is registered with the Reserve Bank of India (RBI) and is authorised to accept public deposits. BAFL is engaged in the business of providing finance for two-wheelers, consumer durables, personal computers, personal loans, insurance services, etc. In FY 2007-08 the company extended its product line with the launch of IPO financing for high networth customers.

Bajaj Finance has modern infrastructure facilities with state-of-art technology which includes automated cheque handling facilities, and computerized loan accounting with on-line customer data to handle customer transactions and requests efficiently.

BAFL went public in the year 1994 and is listed on Bombay Stock Exchange and National Stock Exchange of India.

Headquartered at Pune, the company has a pan-India presence through 50 branches that includes Hyderabad, New Delhi, Chennai, Bangalore, Mumbai, Nagpur, Vijaywada, Nasik, Vishakhapattanam, Kolkata, Goa, Madurai and Pune. The company has served over 40 lakh satisfied customers across the country.

Services offered

The company offers customer loans for the purchase of Pulsar, Avenger, Discover, Platina, KTM and Ninja motorcycles, and Bajaj RE three wheelers.

Recognitions

BAFL is amongst very few NBFCs in the India to receive FAAA rating from Credit Rating and Information Services India (CRISIL) reflecting the highest level of safety of depositors' money.

The company’s short-term debt programme has been awarded with P1+ rating from CRISIL. Its long-term debt programme has received AA+/Stable from CRISIL and LAA+ from ICRA.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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