Bajaj Finance Ltd.

SECTOR: Finance - NBFC

2313.35
₹ -99.75 (-4.13%)
Today's High: 2453.8 Today's Low : 2278.3
52 Week High: 4923.20 52 Week Low : 1783.10
 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.
EfficiencyExcellent
The company knows very well the utilization of its assets.
FinancialsVery Stable
The company possesses stable growth history and sound margins.

 Company Essentials

Market Cap

139191.740777115 Cr.

P/E

28.52

P/B

4.38

Face Value

₹2

Div. Yield

0.5%

Book Value (TTM)

528.7375

Advances

95181.26 Cr.

Operating Revenue

17384 Cr.

Net Profit

3890 Cr.

Promoter Holding

56.2%

EPS (TTM)

81.1236

Sales Growth

37.39 %

ROE

22.13 %

ROCE

14.69 %

Profit Growth

56.58 %

No. of Shares

60.1689069 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 Year37.39%
3 Year33.58%
5 Year33.94%

 Profit Growth

1 Year56.54%
3 Year44.89%
5 Year40.17%

 ROE

1 Year22.13%
3 Year21.15%
5 Year20.99%

 ROCE

1 Year14.69%
3 Year13.53%
5 Year13.35%

 ROA%

4.12

 PEG Ratio

0.51

  PAT Margin (%)

22.38

 EPS Growth(%)

56.12

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Mar 2020 56.2 0
Dec 2019 56.15 0
Sep 2019 58.26 0
Jun 2019 58.26 0
Mar 2019 55.17 0
* Figures given above are % of equity capital

 Strengths

  • Company has maintained a good ROA of 3.54666666666667% in last 3 years.
  • Company has a healthy Return on Equity (ROE) track record of 21.1466666666667%.
  • Operating Income has grown well for the company over past 3 years: 3 years CAGR 33.5758617841732%.
  • The company has delivered substantial profit growth of 44.8859765330116% over past 3 years.
  • The company boasts a well-maintained advances growth ratio of 56.6120545619146%.
  • Promoters shareholding is 56.2%.

 Limitations

  • The company is trading at 8.98 times the book value.
  • Provision and contingencies have increased by 36.4372469635628%.

 Quarterly Result (All Figures are in Crores.)

Particulars Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020
Operating Revenue 4878.93 5297.78 5696.63 6303.56 6511.09
Other Income 3.8 7.03 1.07 14.94 4.07
Interest Expended 1644.22 1797.19 1952.38 2051.64 2056.34
Operating Expenses 1474 1707.11 1821.5 2197.89 3173.29
Total Provisions 0 0 0 0 0
Depreciation 38.93 56.47 63.79 69.72 80.72
Profit Before Tax 1725.58 1744.04 1860.03 1999.25 1204.81
Tax 611.99 619.31 483.36 511.1 313.24
Net Profit 1113.59 1124.73 1376.67 1488.15 891.57

 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 5382 7294 9963 12653 17384
Other Income 176 40 26 12 17
Interest 2274 2959 3853 4649 6037
Adjusted EPS 18 24 34 43 67
Total Provisions 664 725 1076 1235 1685
PBT & Exceptionals 1357 1965 2818 3831 6035
Exceptional Items 0 0 0 0 0
Profit Before Tax 1357 1965 2818 3831 6035
Operating Expenses 1263 1685 2242 2950 3644
Profit After Tax 898 1279 1837 2485 3890

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 50 53.55 109.37 115.03 115.37
Total Reserves 4749.7 7373.09 9490.94 15702.18 19448.26
Borrowings 18273.62 25286.97 33115.96 0 0
Other N/C liabilities 1337.71 2204.13 3150.4 -452.73 -254.45
Current liabilities 9910.11 14260.84 21032.91 65487.97 88529.86
Total Liabilities 34321.14 49178.58 66899.58 80852.45 107839.04
Assets
Loans 18119.67 24778.55 32028.1 75532.88 95181.26
Net Block 249.18 287 361.13 464.66 654.33
Capital WIP 0 0 0 0 0
Investments 175.09 485.15 1090.3 0 0
Other Loans 1350.74 1893.62 2008.84 47.4 182.7
Other N/C Assets 0 0 0 31.59 19.64
Current Assets 14426.46 21734.26 31411.21 4775.92 11801.11
Total Assets 34321.14 49178.58 66899.58 80852.45 107839.04
* Other Non-current Liabilities include Net deferred Liabilities

 Corporate Actions

 Company Presentations

 Bajaj Finance Stock Price Analysis and Quick Research Report

Is Bajaj Finance 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 Finance 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 38900 Cr and the compounded growth of profit in the past 3 years is 44.8859765330116 %. The PAT margin of Bajaj Finance is 22.3788927385402 %.

  • 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 Finance , the EPS grew by 56.12 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a healthy ROE track record. The ROE of Bajaj Finance is at 22.1287347508516 % 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 Finance is worth at the current levels at Rs 1988.85. The stock is trading at a current P/E ratio of 44.85 and the average historical P/E for the last 5 years was 29.298.

  • P/B ratio can be one of the best metrics to value such companies. Currently, Bajaj Finance is trading at a P/B of 8.98231485428127 . The average historical P/B for the last 5 years was 6.296. 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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