BAJAJHLDNG - 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 Holdings & Investment Ltd (BAJAJHLDNG), a holding company with exposure to some of India’s top financial and auto businesses. 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: ₹293 — strong earnings base

PAT Qtr: ₹236 Cr vs ₹90.7 Cr — +257% QoQ, driven by investment gains

ROE: 6.64%, ROCE: 7.24% — modest returns for a holding company

Debt-to-equity: 0.00 — pristine balance sheet

Dividend & Cash Flow

Dividend Yield: 0.69% — consistent but not high

Cash flows are stable, supported by dividends from subsidiaries

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 103 Extremely overvalued vs industry PE of 22.1

P/B Ratio ~7.77 High premium to book value

PEG Ratio -12.8 Negative — earnings volatility distorts growth valuation

Intrinsic Value ~₹12,500–₹12,800 Trading above fair value

Valuation is stretched, likely driven by market optimism around its holdings rather than core earnings.

🏢 Business Model & Competitive Edge

Industry: Holding company — indirect exposure to financials and auto

Moat: Strategic stakes in Bajaj Finance, Bajaj Finserv, Bajaj Auto

Catalysts

Strong performance of subsidiaries

Long-term compounding via dividend income and capital appreciation

Zero debt and high promoter holding (51.32%) ensure stability

Bajaj Holdings acts as a proxy for its high-growth subsidiaries, offering diversified exposure.

📉 Technical & Entry Zone

Current Price: ₹13,534

DMA 50/200: Trading above both — bullish trend

MACD: -54.5 — bearish divergence

RSI: 53.0 — neutral zone

📌 Suggested Entry Zone: ₹12,800–₹13,200

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

🕰️ Long-Term Holding Guidance

Hold if already invested — indirect exposure to Bajaj group’s growth engines

Buy on dips near ₹13,000 for long-term compounding

2026 Target Price: ₹14,740–₹15,200 based on subsidiary performance and historical return trends

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⭐ Fundamental Rating

3.8

Strong underlying assets and zero debt, but valuation and modest direct returns temper short-term enthusiasm. Let me know if you’d like a breakdown of its NAV vs market cap or a comparison with other holding companies.

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