BAJAJHLDNG - Fundamental Analysis

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

Fundamental Rating: 4.2

Here’s a thorough evaluation of Bajaj Holdings & Investment Ltd (BAJAJHLDNG) based on its financial strength, valuation, business model, and long-term potential

📊 Core Financials & Profitability

EPS: ₹586 — exceptionally strong, reflects sizable stakes in high-performing group companies.

PAT Trend: ₹1,725 Cr (slight decline from ₹1,748 Cr) — a stable income stream driven by investment returns.

ROE: 11.0% and ROCE: 9.82% — moderate, as expected for a holding company without active operating units.

Debt-to-Equity: 0.00 — completely debt-free; a strong signal of financial prudence.

Dividend Yield: 0.66% — modest, offering token income while emphasizing capital growth.

💰 Valuation Metrics

P/E Ratio: 24.4 — slightly above industry PE of 22.6; fair for a holdings business with premium assets.

P/B Ratio: ~2.5 (₹14,062 ÷ ₹5,633) — conservative for a holding structure, indicating reasonable valuation.

PEG Ratio: 1.47 — valuation aligned with expected earnings growth; not deeply undervalued but not overheated either.

Intrinsic Value: Likely close to current price, driven by the NAV of underlying holdings like Bajaj Auto, Finserv, and Finance.

🧠 Business Model & Strategic Positioning

Structure: Investment holding company for Bajaj Group — its primary assets include shares in Bajaj Auto, Bajaj Finance, and Bajaj Finserv.

Strengths

Strong portfolio of fundamentally robust group entities.

Stable dividend and investment income from subsidiaries.

High-quality NAV with minimal operational risk.

Risks

Performance dependent on group companies — indirect exposure.

Decline in quarterly profit (–36.5%) can spook sentiment short-term.

Slight dip in FII holdings indicates cautious foreign sentiment.

📉 Technical & Sentiment Indicators

RSI: 52.9 — neutral zone, no strong signals.

MACD: +42.4 — bullish trend visible.

Volume: Below average — passive investor mood, possibly due to lack of active catalysts.

🎯 Suggested Entry Zone

₹13,000 – ₹13,800: Ideal for accumulation. Offers exposure near the 50 DMA without chasing highs.

A dip below ₹13,000 would enhance margin of safety, especially if NAV of holdings remains strong.

🕰️ Long-Term Holding Outlook

Bajaj Holdings is ideal for capital appreciation with lower volatility

Strong NAV assets with high cash flow generation.

Minimal debt and resilient structure.

Works well as a core holding in a balanced portfolio.

Suitable for a 5–7 year investment horizon to capture compounding from group entities.

Let me know if you’d like a NAV breakup of its holdings or a comparative look against similar structures like Tata Sons (via Tata Investment Corp) or Mahindra Holdings. I’ve got you covered.

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