BAJAJFINSV - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Here’s a deep-dive into Bajaj Finserv’s financial fundamentals, valuation, and strategic outlook

📊 Core Financials & Performance

EPS: ₹59.6 — stable earnings base.

PAT Growth: ₹2,789 Cr (up 30.5%) — robust quarterly improvement.

ROE: 13.4% and ROCE: 11.0% — respectable, though not standout for the financial sector.

Debt-to-Equity: 4.92 — highly leveraged due to its NBFC structure; manageable with strong capital discipline.

Dividend Yield: 0.05% — negligible, indicates reinvestment focus over income distribution.

💰 Valuation Metrics

P/E Ratio: 33.1 — above industry average (22.6); markets may be pricing in future growth optimism.

P/B Ratio: ~4.36 (₹1,973 ÷ ₹453) — moderately high, driven by premium branding.

PEG Ratio: 1.33 — fair valuation relative to projected growth; not deeply undervalued.

Intrinsic Value: Slightly below CMP, offering only a marginal value cushion.

🧠 Business Model & Strategic Edge

Segments: Insurance (life/general), lending via Bajaj Finance, and wealth management.

Strengths

Diversified across financial services with synergies from group entities.

Tech-enabled growth across insurance and financing.

Strong brand presence and customer base via digital platforms.

Risks

High leverage and regulatory oversight.

Lower ROCE vs pure lending peers.

Minimal yield makes it less attractive for dividend-oriented investors.

📉 Technical Indicators

RSI: 40.6 — entering oversold territory, could hint at a reversal.

MACD: –4.00 — bearish momentum persists.

Volume: Significantly below 1-week average — indicates cooling sentiment.

🎯 Entry Zone Recommendation

₹1,850 – ₹1,930: Price range near DMA 200 offers entry potential.

Watch for RSI recovery or MACD crossover for timing accuracy.

🔒 Long-Term Investment Outlook

Strong candidate for diversified financial exposure across lending, insurance, and fintech.

Best suited for a 4–6 year holding period, allowing full play of insurance penetration and digital growth.

Ideal for investors seeking sector breadth rather than aggressive returns.

Want a portfolio check to see how this fits your overall allocation? Or curious how it stacks up vs HDFC or ICICI? I can line up a quick match-up for you.

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