⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BAJAJFINSV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | BAJAJFINSV | Market Cap | 2,86,914 Cr. | Current Price | 1,793 ₹ | High / Low | 2,195 ₹ |
| Stock P/E | 202 | Book Value | 62.6 ₹ | Dividend Yield | 0.06 % | ROCE | 27.4 % |
| ROE | 20.9 % | Face Value | 1.00 ₹ | DMA 50 | 1,946 ₹ | DMA 200 | 1,977 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.25 % | PAT Qtr | 0.62 Cr. | PAT Prev Qtr | 1,085 Cr. |
| RSI | 33.7 | MACD | -64.6 | Volume | 15,35,510 | Avg Vol 1Wk | 15,09,865 |
| Low price | 1,726 ₹ | High price | 2,195 ₹ | PEG Ratio | 3.51 | Debt to equity | 0.00 |
| 52w Index | 14.2 % | Qtr Profit Var | -94.2 % | EPS | 8.91 ₹ | Industry PE | 16.9 |
📊 Financial Overview
- Revenue & Profitability: PAT collapsed from 1,085 Cr. to 0.62 Cr. (-94.2%), showing severe earnings volatility.
- Margins & Returns: ROCE (27.4%) and ROE (20.9%) are strong, reflecting efficient capital use despite weak quarterly results.
- Debt: Debt-to-equity ratio at 0.00, debt-free balance sheet ensures financial stability.
- Cash Flow: EPS at 8.91 ₹, very low relative to valuation multiples.
💹 Valuation Metrics
- P/E Ratio: 202 vs Industry PE of 16.9 → Extremely overvalued.
- P/B Ratio: Current Price ₹1,793 vs Book Value ₹62.6 → Highly stretched.
- PEG Ratio: 3.51 → Suggests poor valuation relative to growth.
- Intrinsic Value: Current price far above fair value zone.
🏢 Business Model & Competitive Advantage
- Strong presence in financial services, insurance, and investments.
- High ROCE and ROE highlight operational efficiency.
- However, earnings volatility and stretched valuations undermine competitive strength.
📈 Entry Zone Recommendation
- Technicals: RSI at 33.7 (oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹1,500–₹1,600 if correction continues.
- Long-term holding viable only if earnings stabilize and valuation aligns closer to industry averages.
✅ Positive
- Strong ROCE (27.4%) and ROE (20.9%).
- Debt-free balance sheet.
- DII holding increased (+0.25%).
⚠️ Limitation
- Quarterly profit collapsed (-94.2%).
- Extremely high P/E ratio (202) compared to industry average.
- P/B ratio highly stretched.
- Dividend yield very low (0.06%).
📉 Company Negative News
- FII holding reduced (-0.05%).
- Weak quarterly earnings performance.
📈 Company Positive News
- DII holding increased (+0.25%).
- Strong efficiency metrics despite earnings volatility.
🏭 Industry
- Industry PE at 16.9, far lower than company’s 202.
- Financial services sector stable, but company trades at extreme premium.
🔎 Conclusion
- Bajaj Finserv shows strong efficiency metrics but faces severe earnings volatility.
- Valuation is extremely stretched compared to industry peers, limiting near-term upside.
- Best strategy: Wait for correction towards ₹1,500–₹1,600 before entry.
- Long-term holding viable only if profitability stabilizes and valuation normalizes.