⚠ 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.
BAJFINANCE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | BAJFINANCE | Market Cap | 5,47,392 Cr. | Current Price | 880 ₹ | High / Low | 1,102 ₹ |
| Stock P/E | 34.0 | Book Value | 150 ₹ | Dividend Yield | 0.50 % | ROCE | 11.5 % |
| ROE | 18.5 % | Face Value | 1.00 ₹ | DMA 50 | 958 ₹ | DMA 200 | 950 ₹ |
| Chg in FII Hold | -0.48 % | Chg in DII Hold | 0.47 % | PAT Qtr | 3,750 Cr. | PAT Prev Qtr | 4,251 Cr. |
| RSI | 34.6 | MACD | -30.2 | Volume | 1,33,10,891 | Avg Vol 1Wk | 1,07,64,921 |
| Low price | 810 ₹ | High price | 1,102 ₹ | PEG Ratio | 1.05 | Debt to equity | 3.18 |
| 52w Index | 23.8 % | Qtr Profit Var | 1.19 % | EPS | 27.2 ₹ | Industry PE | 17.2 |
📊 Financial Overview
- Revenue & Profitability: PAT declined slightly (3,750 Cr. vs 4,251 Cr.), showing modest growth (+1.19%).
- Margins & Returns: ROE (18.5%) is strong, while ROCE (11.5%) is moderate, reflecting average efficiency.
- Debt: Debt-to-equity ratio at 3.18, high but typical for NBFCs.
- Cash Flow: EPS at 27.2 ₹, consistent earnings profile supporting valuation.
💹 Valuation Metrics
- P/E Ratio: 34.0 vs Industry PE of 17.2 → Overvalued.
- P/B Ratio: Current Price ₹880 vs Book Value ₹150 → Stretched valuation.
- PEG Ratio: 1.05 → Reasonable, suggesting valuation aligns with growth prospects.
- Intrinsic Value: Current price above fair value zone, limited upside.
🏢 Business Model & Competitive Advantage
- Leading NBFC with strong presence in consumer lending, SME financing, and digital platforms.
- High ROE highlights strong profitability and efficient capital use.
- However, high leverage and stretched valuation limit near-term upside.
📈 Entry Zone Recommendation
- Technicals: RSI at 34.6 (oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹800–₹850 for accumulation.
- Long-term holding viable given strong fundamentals, but only at reasonable valuations.
✅ Positive
- Strong ROE (18.5%).
- Quarterly profits stable despite slight decline.
- PEG ratio (1.05) suggests fair valuation relative to growth.
- DII holding increased (+0.47%).
⚠️ Limitation
- High debt-to-equity ratio (3.18).
- P/E ratio (34.0) significantly above industry average.
- P/B ratio stretched compared to book value.
📉 Company Negative News
- FII holding reduced (-0.48%).
- Stock trading below DMA levels, showing weak momentum.
📈 Company Positive News
- DII holding increased (+0.47%).
- Stable quarterly profits despite sector challenges.
🏭 Industry
- Industry PE at 17.2, much lower than company’s 34.0.
- NBFC sector stable with long-term growth potential in India.
🔎 Conclusion
- Bajaj Finance shows strong profitability and industry leadership but trades at stretched valuations.
- High leverage is structural for NBFCs but manageable given consistent earnings.
- Best strategy: Accumulate in the ₹800–₹850 zone.
- Long-term holding viable with stable growth, but entry should be at lower valuations.