BAJAJFINSV - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Bajaj Finserv Ltd, a diversified financial powerhouse. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹7.86 — relatively low given market cap

PAT Qtr: ₹330 Cr vs ₹7.57 Cr — sharp rebound, but YoY volatility remains

ROE: 20.9%, ROCE: 27.4% — excellent capital efficiency

Revenue and profit growth driven by insurance, lending, and fintech arms

Balance Sheet Strength

Debt-to-equity: 0.00 — pristine balance sheet

Book Value: ₹52.4 — price-to-book ratio ~39.4, extremely high

Dividend Yield: 0.05% — minimal, reinvestment-focused

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 263 Extremely overvalued vs industry PE of 22.1

P/B Ratio ~39.4 Excessive premium to book value

PEG Ratio 4.58 Overvalued relative to earnings growth

Intrinsic Value ~₹1,800–₹1,900 Trading above fair value

Valuation is stretched, driven more by brand premium and future potential than current earnings.

🏦 Business Model & Competitive Edge

Industry: Financial services — insurance, lending, asset management

Moat: Strong brand, digital transformation, diversified subsidiaries (Bajaj Finance, Bajaj Allianz)

Catalysts

Expansion into fintech and digital marketplaces

Strong promoter holding (60.78%)

Increasing FII/DII interest — institutional confidence building

Bajaj Finserv is a holding company with high-growth subsidiaries, making it a strategic long-term bet despite short-term valuation concerns.

📉 Technical & Entry Zone

Current Price: ₹2,064

DMA 50/200: Trading above both — bullish trend

MACD: +29.4 — positive momentum

RSI: 65.1 — nearing overbought zone

📌 Suggested Entry Zone: ₹1,950–₹2,000

This range offers a better margin of safety and aligns with technical support levels.

🕰️ Long-Term Holding Guidance

Hold if already invested — strong fundamentals and brand moat

Buy on dips near ₹1,980 for long-term compounding

2026 Target Price: ₹2,565 based on projected growth and digital expansion

1

⭐ Fundamental Rating

4.2

1

shareprice-target.com

Edit in a page