Bajaj Finance Limited is a major force in India, with a market cap of Rs. 440,545.87 crores. Labeled as a top non-banking financial company (NBFC), it pulls in investors across the nation. Its share price of Rs. 7,117.10 clearly shows its strong growth and stability.
Key Takeaways
- Bajaj Finance’s current share price stands at Rs. 7,117.10 with a market capitalization of Rs. 440,545.87 crores.
- The company’s trailing twelve-month (TTM) price-to-earnings (PE) ratio is 30.49, and its price-to-book (P/B) ratio is 5.74.
- Bajaj Finance’s return on equity (ROE) is an impressive 18.84%.
- The company’s one-year stock performance has experienced a -0.61% negative return.
- Bajaj Finance reported a net profit of Rs. 14,443 crores on net sales of Rs. 54,969 crores.
About Bajaj Finance
Company Overview
Bajaj Finance Limited calls Pune, Maharashtra, home. It’s a top-notch non-banking financial company in India. Launched in 1987, Bajaj has become vital in the retail finance game, offering a broad range of services. They meet the changing needs of their customers well.
This company tackles areas like two-wheeler and consumer durables financing, loans, and insurance. They’ve really made a mark in semi-urban and rural parts. This is thanks to new product efforts, expanding their service reach across the financial sector.
Under the guidance of Chairman Sanjiv Bajaj and Managing Director Rajeev Jain, innovation and putting customers first are key goals. Bajaj Finance shines in providing easy and high-tech financial solutions to its clients.
A strong financial outlook helps Bajaj Finance steer through market ups and downs. Their dedication to stakeholder value has won them a trusted spot in the industry and with customers.
| Metric | Bajaj Finance | HDFC AMC | Chola Fin Hold |
|---|---|---|---|
| Stock Price | ₹7,141 | ₹4,087 | ₹1,528.95 |
| Market Capitalization | ₹252,342.51 Cr | ₹87,289.61 Cr | ₹28,710.24 Cr |
| TTM PE | 30.97 | 44.86 | 16.20 |
| P/B Ratio | 4.18 | 12.33 | 2.80 |
| ROE | 13.50% | 27.48% | 17.30% |
Bajaj Finance stands out with strong finances. Their impressive market cap, good P/E and P/B ratios, and solid return on equity prove their worth. They do right by their investors.
Key Financial Metrics
Bajaj Finance Ltd. is a top non-banking financial company in India. It has shown excellent financial growth over the years. The company’s revenue growth has been better than its 3-year average growth.
Bajaj Finance has been smart in how it spends money too. Until March 31, 2024, it put 34.06% of its earnings into interest and 11.64% into paying employees. This shows it runs efficiently.
Also, Bajaj Finance keeps its lending safe with a low non-payment record. As of March 31, 2021, its bad loans were a small part of its total loans. This shows the company makes careful decisions and lends money wisely.
Financial Performance Highlights
- Bajaj Finance’s sales have grown yearly by 32.79%, higher than its 3-year average of 26.95%.
- 31.06% of the company’s money went to interest, and 11.64% went to workers by March 31, 2024.
- By March 31, 2021, Bajaj Finance had only 1.79% in problem loans, showing a strong loan quality.
These numbers show how well Bajaj Finance is doing financially. They highlight its steady money growth, smart spending, and careful lending. This puts the company in a strong place in India’s financial sector.
“Bajaj Finance’s strong financial performance reflects its ability to navigate market challenges and deliver value to its stakeholders.”
Bajaj Finance share price
The Bajaj finance share price closed at ₹7,137.95 on the National Stock Exchange (NSE) today. It reached a high of ₹8,192 and a low of ₹6,188 in the past year. This shows how active the Bajaj finance stock price is.
Bajaj Finance has a P/E ratio of 30.6 and a P/B ratio of 6.14. These numbers tell us the Bajaj finance equity valuation fits the industry’s standard. It shows the company is doing well financially and in the market.
| Metric | Value |
|---|---|
| Current Share Price | ₹7,137.95 |
| 52-week High | ₹8,192 |
| 52-week Low | ₹6,188 |
| P/E Ratio | 30.6 |
| P/B Ratio | 6.14 |
| Market Capitalization | ₹441,837 Cr |
The company is worth a huge ₹441,837 crores. This makes it one of the top financial services providers in India.
“Bajaj Finance’s consistent financial performance and robust growth have made it a highly sought-after stock among investors seeking exposure to the thriving Indian financial services sector.”
Bajaj Finance is well known for creating value for its shareholders. Many people keep a close eye on this company in the Indian stock market.
Stock Performance and Ratios
Bajaj Finance is a top financial company in India. It has shown steady stock growth. Its stock outperformed the Nifty 100 index over three years.
However, it did not do as well as the Nifty Financial Services index. This index is focused on finance companies.
Performance Comparison
| Index | 3-Year Return |
|---|---|
| Bajaj Finance | 25.4% |
| Nifty 100 | 52.57% |
| Nifty Financial Services | 34.6% |
Let’s talk about Bajaj Finance’s key financial numbers. It has a P/E ratio of 34.81 and a P/B ratio of 6.14. Its ROE is at 18.84%. These numbers show the market values the company highly.
“Bajaj Finance’s solid financials and market position make it popular. Although its stock underperformed, many still see it as a good investment.”
In conclusion, Bajaj Finance remains a key player in India’s financial world. It aims to keep growing and staying profitable.
Analyst Recommendations
Bajaj Finance is a top non-banking financial company in India. It has caught the eye of many investors. A recent survey of 32 analysts shows that 13 feel very confident (Strong Buy) and 10 say Buy. Only 4 suggest selling.
These experts praise Bajaj Finance’s solid place in the market and wide range of products. They also think highly of its risk control. But, a few analysts worry about the quality of its assets and its current value.
| Brokerage | Recommendation | Average Target Price | % Difference |
|---|---|---|---|
| Prabhudas Lilladhar | Buy | ₹7,139.00 | -0.27% |
| Emkay | Buy | ₹7,613.52 | 2.99% |
| KRChoksey | Buy | ₹7,724.68 | 4.58% |
| BOB Capital Markets Ltd. | Buy | ₹7,724.68 | 4.58% |
| SMC Online | Buy | ₹8,100.00 | 6.06% |
| Axis Direct | Buy | ₹8,100.00 | 6.06% |
| Motilal Oswal | Buy | ₹8,100.00 | 6.06% |
| ICICI Securities Limited | Buy | ₹8,100.00 | 6.06% |
The average target price advised by analysts is ₹8,247.23. That means a possible 13% increase from the current market value. This is useful for investors to plan their Bajaj Finance moves.
“Bajaj Finance’s strong market position, diversified product offerings, and prudent risk management make it an attractive investment proposition for long-term investors.”
Income Statement and Balance Sheet
Bajaj Finance in India has shown great financial strength. By March 2024, it made Rs. 14,931.98 crores in total income. Also, it earned a big net profit of Rs. 3,824.53 crores.
This company’s balance sheet looks very good. It was Rs. 2,57,164.33 crores in assets but owed only Rs. 2,32,194.82 crores. Such strong numbers show their financial health.
| Financial Metric | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Total Shareholders Funds (₹ in Cr.) | 72,010.53 | 51,493.13 | 42,055.88 | 35,938.74 | 31,813.21 |
| Total Capital And Liabilities (₹ in Cr.) | 2,96,614.45 | 2,16,524.75 | 1,68,016.08 | 1,38,338.89 | 1,38,003.57 |
| Short Term Borrowings (₹ in Cr.) | 2,20,377.80 | 47,894.70 | 29,870.38 | 27,092.09 | 36,923.32 |
| Current Investments (₹ in Cr.) | 37,153.36 | 28,737.85 | 16,371.82 | 20,169.12 | 20,138.98 |
| Deferred Tax Assets [Net] (₹ in Cr.) | 926.71 | 919.00 | 908.40 | 919.21 | 847.61 |
| Contingent Liabilities (₹ in Cr.) | 0.00 | 6,639.93 | 5,658.07 | 4,831.27 | 4,886.14 |
Bajaj Finance’s results show it’s doing well overall. It brings in good money, manages its finances well, and makes a good profit for its owners. This success comes from smart risk handling and having many kinds of business.
Business Strategies and Initiatives
Proprietary Marketplaces
Bajaj Finance has created five marketplaces to provide a wide range of financial products. These efforts boost customer interaction and help the company grow in different areas. This includes making it easier for customers to buy more services and increasing the company’s range of offerings.
The “EMI Store” is the first one. It lets you buy many items on EMI, just like you might do with phones. It makes paying for things easier by giving many ways to spread out the cost.
Next is the “Insurance Marketplace.” It offers lots of insurance options, like life insurance and health insurance, to meet customer’s changing needs.
The “Investment Marketplace” is another big step. It gives access to mutual funds, fixed deposits, and more. This helps customers make smarter choices with their money.
There’s also “BFL Health,” which takes care of medical needs. It includes seeing doctors online and booking tests at hospitals.
The “Broking App” makes trading stocks easier. You can check real-time stock info and handle your investments in one place. It’s all designed to be simple to use.
Bajaj Finance got the go-ahead to run its own mobile wallet too. This led to the “Bajaj Pay” app, a digital wallet that does a lot. It adds to the company’s efforts to be more digital and serve customers well.
Bajaj Finance is moving into new areas with these ideas, showing they’re forward-thinking. They want to offer more kinds of services and products. Plus, they’re making it all work in a digital way, which is important today.
“We’re building more services and products to help our customers better. The marketplaces and the Bajaj Pay app show our focus on new ideas and great service for our customers.”
– Sanjiv Bajaj, Chairman, Bajaj Finance Ltd.
Risk Management and Portfolio Quality
At Bajaj Finance, strong risk management is a big reason for its success. The company keeps its non-performing asset (NPA) ratios very low. This shows how good they are at managing the loans they give out.
Until March 31, 2021, Bajaj Finance’s bad loan ratios were very low; 1.79% for Gross NPA and 0.75% for Net NPA. This is thanks to their strong focus on avoiding bad loans. They do this by sticking to careful lending practices.
To manage risks, Bajaj Finance uses many tools. They look at a lot of data, have tough rules for giving out loans, and always keep an eye on their loan portfolio. They use their own models to see and fight risks to their loan quality, even when times are tough.
- Bajaj Finance had only a 0.41% NPA ratio by the end of Q3FY23, showing how well they manage risks.
- They had a 23% capital adequacy ratio (CAR), which is very strong. It helps them deal with any big financial hits.
- In Q3FY23, their provision coverage ratio (PCR) was at 64%. This shows they set aside money wisely, ready for any loans that might not be paid back.
Bajaj Finance is proactive in handling risks. This has kept their assets safe and helped them do well, even in rough markets. Their strong focus on managing risks and keeping their loan quality up has led to their steady growth and success in their field.
“Bajaj Finance’s robust risk management practices have been the bedrock of our success. By maintaining one of the lowest non-performing asset ratios in the industry, we have been able to deliver consistent and sustainable growth for our shareholders.”
– Rajeev Jain, Managing Director, Bajaj Finance
Conclusion
Bajaj Finance stands out in India’s financial world. Its strong financial showings and smart digital moves make it a great choice for investment. The company offers a wide range of products and uses strong risk management. Analysts also think it’s a good bet for growing your money. This makes Bajaj Finance a top choice for those wanting to invest in India’s changing financial scene.
The company’s yearly revenue has grown by 34.5%. That’s more than its previous steady growth rate of 21.89%. Also, over the last three years, its stock performed better than the Nifty 100 index. This shows Bajaj Finance is a strong choice for people looking to invest.
Bajaj Finance is always looking for new ways to succeed in finance. It uses new ideas, offers many different services, and is careful with risks. For investors excited about the Bajaj finance investment potential and its Bajaj finance growth prospects, this article has all the key points they need.
FAQ
What is the current share price of Bajaj Finance?
The Bajaj Finance share price reached Rs. 7,132.65 on the NSE as of July 1, 2024.
What is the 52-week high and low of Bajaj Finance stock?
It hit a 52-week high of Rs. 8,192.00 and went as low as Rs. 6,187.80 in that time.
What are Bajaj Finance’s key financial ratios?
Bajaj Finance boasts a P/E of 34.81 and a P/B of 6.14. Its ROE stands at a healthy 18.84%.
How have Bajaj Finance’s shares performed compared to the market?
Over three years, Bajaj Finance saw a 25.4% return, below the Nifty 100’s 52.57% gain.
What are the latest analyst recommendations on Bajaj Finance stock?
Recent analysis shows 13 Strong Buys, 10 Buys, 5 Holds, and 4 Sells for Bajaj Finance.
What are Bajaj Finance’s key financial metrics?
Ending March 31, 2024, it made Rs. 14,931.98 crores in income with Rs. 3,824.53 crores in profit. ROE was 18.84%, and ROCE hit 48.92%.
What are Bajaj Finance’s strategic initiatives?
Bajaj Finance is pushing five exclusive marketplaces. This includes the “EMI Store,” “Insurance Marketplace,” “Investment Marketplace,” “BFL Health,” and the “Broking App.” They’ve also introduced the “Bajaj Pay” app for seamless payments.
How does Bajaj Finance manage risk?
It uses strong risk management, reflected in its low NPA ratios in the NBFC field. By March 31, 2021, Bajaj Finance reported a Gross NPA of 1.79% and a Net NPA of 0.75%.
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