⚠ 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.
BAJAJHFL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | BAJAJHFL | Market Cap | 69,233 Cr. | Current Price | 83.1 ₹ | High / Low | 137 ₹ |
| Stock P/E | 27.8 | Book Value | 25.4 ₹ | Dividend Yield | 0.00 % | ROCE | 9.55 % |
| ROE | 13.5 % | Face Value | 10.0 ₹ | DMA 50 | 88.7 ₹ | DMA 200 | 103 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.85 % | PAT Qtr | 675 Cr. | PAT Prev Qtr | 643 Cr. |
| RSI | 36.9 | MACD | -2.09 | Volume | 85,55,099 | Avg Vol 1Wk | 68,74,780 |
| Low price | 79.8 ₹ | High price | 137 ₹ | PEG Ratio | 0.62 | Debt to equity | 4.44 |
| 52w Index | 5.77 % | Qtr Profit Var | 23.2 % | EPS | 2.97 ₹ | Industry PE | 14.1 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from 643 Cr. to 675 Cr. (+23.2%), showing steady growth momentum.
- Margins & Returns: ROCE (9.55%) and ROE (13.5%) are moderate, reflecting average efficiency compared to peers.
- Debt: Debt-to-equity ratio at 4.44, high but typical for housing finance companies.
- Cash Flow: EPS at 2.97 ₹, consistent but modest relative to valuation multiples.
💹 Valuation Metrics
- P/E Ratio: 27.8 vs Industry PE of 14.1 → Overvalued.
- P/B Ratio: Current Price ₹83.1 vs Book Value ₹25.4 → Stretched valuation.
- PEG Ratio: 0.62 → Attractive, suggesting valuation is reasonable relative to growth.
- Intrinsic Value: Current price above fair value zone, but supported by growth prospects.
🏢 Business Model & Competitive Advantage
- Strong presence in housing finance with diversified lending portfolio.
- High leverage typical for sector, but growth momentum supports sustainability.
- Moderate efficiency metrics limit competitive edge compared to top peers.
📈 Entry Zone Recommendation
- Technicals: RSI at 36.9 (oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹75–₹80 for accumulation.
- Long-term holding viable given growth prospects, but only at lower valuations.
✅ Positive
- Quarterly profit growth (+23.2%).
- PEG ratio (0.62) suggests fair valuation relative to growth.
- DII holding increased (+0.85%).
- FII holding slightly increased (+0.03%).
⚠️ Limitation
- High debt-to-equity ratio (4.44).
- P/E ratio (27.8) significantly above industry average.
- P/B ratio stretched compared to book value.
- No dividend yield (0.00%).
📉 Company Negative News
- Stock trading below DMA levels, showing weak momentum.
- High leverage raises risk in volatile interest rate environments.
📈 Company Positive News
- Quarterly profits improved steadily.
- Institutional support with rising DII and FII holdings.
🏭 Industry
- Industry PE at 14.1, much lower than company’s 27.8.
- Housing finance sector stable with long-term demand growth in India.
🔎 Conclusion
- Bajaj Housing Finance shows steady profitability growth but trades at stretched valuations.
- High leverage is structural for the sector but manageable with growth momentum.
- Best strategy: Accumulate in the ₹75–₹80 zone.
- Long-term holding viable if earnings growth sustains and valuation aligns closer to industry averages.