Bajaj Finserv Ltd.

SECTOR: Finance - Investment

5139.75
₹ -148.2 (-2.8%)
Today's High: 5335.05 Today's Low : 5070
52 Week High: 10297.00 52 Week Low : 3985.60
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsVery Stable
The company possesses stable growth history and sound margins.

 Company Essentials

Market Cap

81901.202338725 Cr.

P/E

233.66

P/B

23.56

Face Value

₹5

Div. Yield

0.06%

Book Value (TTM)

218.1961

Advances

0 Cr.

Operating Revenue

423 Cr.

Net Profit

307 Cr.

Promoter Holding

60.8%

EPS (TTM)

21.9971

Sales Growth

74.89 %

ROE

10.18 %

ROCE

10.79 %

Profit Growth

116.90 %

No. of Shares

15.9348611 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Income Growth

1 Year74.79%
3 Year20.46%
5 Year24.05%

 Profit Growth

1 Year116.2%
3 Year23.5%
5 Year29.9%

 ROE

1 Year10.18%
3 Year5.92%
5 Year5.8%

 ROCE

1 Year10.79%
3 Year6.84%
5 Year6.84%

 ROA%

10.02

 PEG Ratio

2

  PAT Margin (%)

72.61

 EPS Growth(%)

116.9

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Mar 2020 60.8 0
Dec 2019 60.71 0
Sep 2019 60.71 0
Jun 2019 60.71 0
Mar 2019 58.37 0
* Figures given above are % of equity capital

 Strengths

  • PAT margin has surged by 14.07%.
  • Company has maintained a good ROA of 5.82666666666667% in last 3 years.
  • Operating Income has grown well for the company over past 3 years: 3 years CAGR 20.4596694585002%.
  • The company has delivered substantial profit growth of 23.4952509622334% over past 3 years.
  • Promoters shareholding is 60.8%.

 Limitations

  • The company is trading at 35.45 times the book value.
  • Provision and contingencies have increased by 37.5%.

 Quarterly Result (All Figures are in Crores.)

Particulars Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020
Operating Revenue 31.85 24.3 381.39 30.59 343.58
Other Income 6.8 7.24 9.63 8.94 9.49
Interest Expended 0 0 0 0 0
Operating Expenses 34.75 30.4 36.28 32.48 31.22
Total Provisions 0 0 0 0 0
Depreciation 0.44 0.43 0.44 0.94 1.09
Profit Before Tax 3.46 0.71 354.3 6.11 320.76
Tax 1.65 0.22 9.27 2.92 2.61
Net Profit 1.81 0.49 345.03 3.19 318.15

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Operating Income 200 242 154 242 423
Other Income 11 9 11 10 26
Interest 0 0 0 0 0
Adjusted EPS 8 10 4 9 19
Total Provisions 6 6 6 8 11
PBT & Exceptionals 158 195 104 167 326
Exceptional Items 0 0 0 0 0
Profit Before Tax 158 195 104 167 326
Operating Expenses 47 50 55 77 112
Profit After Tax 126 163 70 142 307

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 79.56 79.57 79.57 79.57 79.57
Total Reserves 2480.73 2616.41 2686.45 2800.18 3081.34
Borrowings 0 0 0 0 0
Other N/C liabilities 17.34 19.35 19 23.23 20.8
Current liabilities 62.38 31.94 29.11 15.39 29.11
Total Liabilities 2640.01 2747.27 2814.13 2918.37 3210.82
Assets
Loans 0 0 0 0 0
Net Block 75.11 75.15 68.06 67.4 67.79
Capital WIP 0.76 0.97 1.19 8.19 33.34
Investments 1800.77 2102.88 2489.71 5.76 5.63
Other Loans 29.41 30.35 32.71 15.94 27.19
Other N/C Assets 1.57 3.72 2.15 2.47 2.16
Current Assets 732.39 534.2 220.31 2818.61 3074.71
Total Assets 2640.01 2747.27 2814.13 2918.37 3210.82
* Other Non-current Liabilities include Net deferred Liabilities

 Corporate Actions

 Ratings & Research Reports

 Company Presentations

 Bajaj Finserv Stock Price Analysis and Quick Research Report

Is Bajaj Finserv an attractive stock to invest in?

 

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow. Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry. Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

To understand the functions of the Bajaj Finserv better, you must go through the following points:

Key Financials –

  • Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of the company is Rs 3070 Cr and the compounded growth of profit in the past 3 years is 23.4952509622334 %. The PAT margin of Bajaj Finserv is 72.6084387188276 %.

  • EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Bajaj Finserv , the EPS grew by 116.9 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a average ROE track record. The ROE of Bajaj Finserv is at 10.1752014866785 % for the latest year.

  • P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Bajaj Finserv is worth at the current levels at Rs 4537.75. The stock is trading at a current P/E ratio of 364.5 and the average historical P/E for the last 5 years was 443.454.

  • P/B ratio can be one of the best metrics to value such companies. Currently, Bajaj Finserv is trading at a P/B of 35.454958975512 . The average historical P/B for the last 5 years was 21.258. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

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