1. Is Bajaj Finance Ltd a good quality company?
Past 10 year's financial track record analysis by Moneyworks4me indicates that Bajaj Finance Ltd is a good quality company.
2. Is Bajaj Finance Ltd undervalued or overvalued?
The key valuation ratios of Bajaj Finance Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
3. Is Bajaj Finance Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Bajaj Finance Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
|Operating Income (₹ Cr.)||3,092||4,032||5,382||7,294||9,963||12,653||17,386||23,823||23,550||27,895||28,960|
|YoY Gr. Rt. %||-||30.4%||33.5%||35.5%||36.6%||27%||37.4%||37%||-1.2%||18.5%||-|
|Adj EPS (₹ )||11.9||14.5||18||23.9||33.6||43.2||67.4||81.4||65.8||105.3||129.9|
|YoY Gr. Rt. %||-||21%||24.3%||33%||40.6%||28.7%||56.1%||20.6%||-19.2%||60.1%||-|
|BVPS (₹ )||67.7||80.2||96||136.8||175.6||273.6||336.8||526.7||592.4||690.5||727|
|YoY Gr. Rt. %||-||18.6%||19.7%||42.5%||28.4%||55.8%||23.1%||56.4%||12.5%||16.6%||-|
|To view Net Profit/Total Funds (%) Colour Rating Guide click here ⓘ|
|Net Profit/Total Funds (%)||3.9||3.3||3||3.1||3.2||3.4||4.1||4||2.9||4.2||0|
CAGR ⓘCAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Net Interest Income||27.7%||22.9%||17.1%||18.5%|
Key Financial Ratios
|RATIOS \ YEARS||Mar'13||Mar'14||Mar'15||Mar'16||Mar'17||Mar'18||Mar'19||Mar'20||Mar'21||Mar'22||TTM|
|Asset Quality Ratio||To view Asset Quality Ratio Colour Rating Guide click here ⓘ|
|Net NPA to Net Advances (%)||0.2||0.3||0.5||0.3||0.4||0.4||0.6||0.7||0.8||0||-|
|Capitalization Ratio||To view Capitalization Ratio Colour Rating Guide click here ⓘ|
|Capital Adequacy Ratio (%)||22||19.1||18||19.5||20.3||24.7||20.7||25||28.3||0||-|
|Net Profit Margin (%)||19.1||17.8||16.7||17.5||18.4||19.6||22.4||20.5||16.8||22.8||27.2|
|Performance Ratios||To view Performance Ratios Colour Rating Guide click here ⓘ|
|Return on Equity (%)||22.1||19.6||20.4||21.1||21.7||19.6||22.1||19.1||11.8||16.4||17.9|
Return on Equity has increased versus last 3 years average to 18.30%
Total Income has increased 17.07 CAGR in last 3 years
Net Profit has increased 16.00 CAGR in last 3 years
Total income growth is good in last 4 quarters
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|TTM EPS (₹)||129.9||142.4|
|TTM Sales (₹ Cr.)||28,960||33,017|
|BVPS (₹.) ⓘ||727||758.3|
|Reserves (₹ Cr.) ⓘ||43,894||45,791|
|From the Market|
|52 Week Low / High (₹)||5235.60 / 8043.50|
|All Time Low / High (₹)||1.95 / 8043.50|
|Market Cap (₹ Cr.)||4,54,478|
|Equity (₹ Cr.)||121.1|
|Face Value (₹)||2|
|Industry PE ⓘ||30.7|
Bajaj Finance (BFL) is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI). It is a subsidiary of Bajaj Finserv. The company is engaged in the business of lending and acceptance of deposits. The company has a diversified lending portfolio across retail, SMEs and commercial customers with a significant presence in urban and rural India. It accepts public and corporate deposits and offers variety of financial services products to its customers.
The company has implemented various Machine Learning (ML) models in addition to classical logistic regressive models. It is also investing deeply in Artificial Intelligence (AI) for new acquisition and propensity management. These state of-the-art technologies enable decision engines with real time processing capabilities. These also enable unique customer propositions like ‘get now’ and ‘straight through processing’ to constantly push towards a smoother and frictionless experience for its customers. While doing so, BFL is conscious of customer’s privacy and ensures customer consent is obtained for any cross-sell offerings.
BFL has been at the forefront of technology adoption among NBFCs, and has continuously leveraged existing and emerging technologies to launch new products, enhance customer acquisition and servicing processes along with simplifying the back-office. In doing so, it has invested in tools, technologies and practices for robust and expeditious ‘Development-toOperations’ implementation to enable delivery of applications and services at a high velocity. To facilitate rapid development and operational use of technology, BFL has restructured its technology organisation by hosting development, operations, quality assurance and security teams in a single unit to deliver fully integrated and tested application lifecycles.
Business area of the company
Bajaj Finance is one of the largest players in the burgeoning consumer finance segment in India and a pioneer in introducing interest-free EMI finance options in many categories, ranging from consumer durables to lifestyle products to groceries. Apart from consumer finance, the company also has substantial business penetration in SME, commercial and rural lending. It has deeply invested in Application Programme Interface (API) to integrate specialized applications with customer facing interfaces like web portals, app infrastructure and BOTS on to a micro services architecture supported by platform as a service (PaaS) infrastructure.