BAJFINANCE - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:14 pm
Back to Fundamental ListFundamental Rating: 4.0
| Stock Code | BAJFINANCE | Market Cap | 6,27,226 Cr. | Current Price | 1,008 ₹ | High / Low | 1,102 ₹ |
| Stock P/E | 39.2 | Book Value | 150 ₹ | Dividend Yield | 0.44 % | ROCE | 11.5 % |
| ROE | 18.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,015 ₹ | DMA 200 | 941 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | -0.13 % | PAT Qtr | 4,251 Cr. | PAT Prev Qtr | 4,133 Cr. |
| RSI | 43.7 | MACD | -6.40 | Volume | 37,33,571 | Avg Vol 1Wk | 44,62,709 |
| Low price | 678 ₹ | High price | 1,102 ₹ | PEG Ratio | 1.21 | Debt to equity | 3.18 |
| 52w Index | 77.7 % | Qtr Profit Var | 17.2 % | EPS | 25.8 ₹ | Industry PE | 21.2 |
📊 Financials: Bajaj Finance has strong fundamentals with ROE at 18.5% and ROCE at 11.5%, reflecting healthy capital efficiency. EPS stands at ₹25.8, supported by consistent profitability. Debt-to-equity ratio of 3.18 is high but typical for NBFCs, reflecting reliance on borrowings. Quarterly PAT improved from ₹4,133 Cr. to ₹4,251 Cr., showing steady earnings growth (+17.2% YoY).
💹 Valuation: Current P/E of 39.2 is significantly higher than the industry average of 21.2, suggesting premium valuation. P/B ratio (~6.7) is elevated compared to book value of ₹150. PEG ratio of 1.21 indicates reasonable growth prospects relative to valuation. Intrinsic value appears slightly lower than current price, offering limited margin of safety.
🏦 Business Model: Bajaj Finance operates as a leading NBFC with diversified offerings across consumer finance, SME lending, and digital financial services. Competitive advantage lies in strong brand, wide distribution, and technology-driven customer acquisition. However, high leverage and exposure to credit cycles remain risks.
📈 Entry Zone: Attractive accumulation zone is around ₹940–₹980 (near DMA 200 support). Current price ₹1,008 is close to DMA 50 and above DMA 200, suggesting consolidation. RSI at 43.7 indicates neutral momentum, while MACD (-6.40) signals mild weakness.
🕰️ Long-Term Guidance: Bajaj Finance is a fundamentally strong NBFC with consistent profitability and growth. Valuations are premium, but long-term prospects remain intact given strong brand equity and digital adoption. Best strategy is to accumulate near support levels and hold for steady compounding.
Positive
- Strong ROE (18.5%) and consistent profitability 💪
- Quarterly PAT growth from ₹4,133 Cr. to ₹4,251 Cr. 🚀
- Diversified NBFC model with strong brand and digital adoption 📊
Limitation
- High P/E (39.2) compared to industry average ⚠️
- P/B ratio (~6.7) indicates overvaluation 📉
- High debt-to-equity ratio (3.18) reflects leverage risk 📊
Company Negative News
- DII holdings decreased (-0.13%), showing reduced domestic institutional confidence 📉
- MACD (-6.40) indicates short-term weakness ⚠️
Company Positive News
- FII holdings increased (+0.26%), showing foreign investor confidence 📊
- Quarterly PAT growth (+17.2% YoY) highlights strong earnings momentum 🚀
Industry
- NBFC sector benefits from rising consumer finance and digital lending adoption 🏦
- Industry P/E at 21.2 indicates moderate valuation compared to Bajaj Finance’s premium 📊
Conclusion
⚖️ Bajaj Finance is a fundamentally strong NBFC with consistent profitability, strong brand equity, and digital adoption. While valuations are premium and leverage is high, long-term prospects remain positive. Best strategy is to accumulate near ₹940–₹980 and hold for steady compounding.
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