⚠ 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.
BAJAJHLDNG - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | BAJAJHLDNG | Market Cap | 1,09,836 Cr. | Current Price | 9,860 ₹ | High / Low | 14,873 ₹ |
| Stock P/E | 40.8 | Book Value | 2,044 ₹ | Dividend Yield | 0.94 % | ROCE | 7.24 % |
| ROE | 6.64 % | Face Value | 10.0 ₹ | DMA 50 | 10,730 ₹ | DMA 200 | 11,584 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.00 % | PAT Qtr | 181 Cr. | PAT Prev Qtr | 2,181 Cr. |
| RSI | 34.3 | MACD | -346 | Volume | 33,484 | Avg Vol 1Wk | 53,426 |
| Low price | 9,345 ₹ | High price | 14,873 ₹ | PEG Ratio | -5.09 | Debt to equity | 0.00 |
| 52w Index | 9.32 % | Qtr Profit Var | 115 % | EPS | 403 ₹ | Industry PE | 16.9 |
📊 Financial Overview
- Revenue & Profitability: PAT collapsed from 2,181 Cr. to 181 Cr. (-94.2%), showing severe earnings volatility despite long-term holdings strength.
- Margins & Returns: ROCE (7.24%) and ROE (6.64%) are weak, reflecting low efficiency compared to peers.
- Debt: Debt-to-equity ratio at 0.00, debt-free balance sheet ensures financial stability.
- Cash Flow: EPS at 403 ₹, but earnings inconsistency raises concerns.
💹 Valuation Metrics
- P/E Ratio: 40.8 vs Industry PE of 16.9 → Overvalued.
- P/B Ratio: Current Price ₹9,860 vs Book Value ₹2,044 → Stretched valuation.
- PEG Ratio: -5.09 → Negative, reflecting poor growth prospects.
- Intrinsic Value: Current price far above fair value zone.
🏢 Business Model & Competitive Advantage
- Holding company structure with diversified investments across Bajaj Group entities.
- Debt-free balance sheet provides resilience.
- However, profitability volatility and stretched valuations weaken competitive positioning.
📈 Entry Zone Recommendation
- Technicals: RSI at 34.3 (oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹9,000–₹9,300 for accumulation.
- Long-term holding viable only if earnings stabilize and valuations normalize.
✅ Positive
- Debt-free balance sheet.
- EPS at 403 ₹, strong long-term earnings potential.
- DII holding stable, FII reduction minimal.
⚠️ Limitation
- Quarterly profit collapsed (-94.2%).
- ROCE and ROE relatively weak.
- P/E ratio (40.8) significantly above industry average.
- PEG ratio negative, signaling poor growth outlook.
📉 Company Negative News
- FII holding reduced (-0.07%).
- Weak quarterly earnings performance.
📈 Company Positive News
- DII holding stable (0.00%).
- Debt-free structure supports financial stability.
🏭 Industry
- Industry PE at 16.9, much lower than company’s 40.8.
- Financial holding sector stable, but company trades at premium valuations.
🔎 Conclusion
- Bajaj Holdings shows financial stability with a debt-free balance sheet but faces severe earnings volatility.
- Valuation is stretched compared to industry peers, limiting near-term upside.
- Best strategy: Accumulate in the ₹9,000–₹9,300 zone after correction.
- Long-term holding viable only if profitability stabilizes and valuation aligns with industry norms.