Bajaj Finance; 0% returns in 3 years; Should you invest ?
Company Snapshots
- Bajaj Finance is mainly engaged in the business of lending.
- It is one of the largest and most diversified NBFCs in India.
- Company is present in 1,538 locations with 134.7K+ active distribution points of sale
- It also accepts public and corporate deposits and offers variety of financial services products to its customers.
Services Offered
- Mortgages- Offers Home loans, loans against properties, developer finance and lease rental discounting
- SME Lending– Offers loans for unsecured working capital loans to SME and self-employed professionals
- Rural Lending– Offers loan to rural people
- Commercial Lending– Offers loans to auto component manufacturers and the light engineering industry, financial institutions, specialty chemical and pharma industry, and other midmarket companies
Revenue Breakup
- Interest Income: 87%
- Fees & Commission: 10%
- Others : 3%
Fundamental Analysis
Key Ratios
| Market Cap | ₹ 4,37,329 Cr. |
| Current Price | ₹ 7,064 |
| High/Low | ₹ 8,192 / 6,188 |
| Stock PE | 29.3 |
| Industry PE | 23.6 |
| ROCE | 11.90% |
| ROE | 22.10% |
| PEG Ratio | 1 |
| Debt To Equity | 3.84 |
Financial Trend
Revenue: 5 Year Comparison
- 2020: 26,374 crore
- 2024: 54,972 crore
- 5 Year Percentage change: 108.43%
Net Profit: 5 Year Comparison
- 2020: 5,264 crore
- 2024: 14,451 crore
- 5 Year Percentage change: 174.50%
Shareholding Pattern
Change in Shareholding Pattern
| Mar-23 | Jun-24 | 1 Year Change | |
| Promoters | 55.91% | 54.70% | -1.21% |
| FIIs | 19.16% | 21.08% | 1.92% |
| DIIs | 12.92% | 14.23% | 1.31% |
| Government | 0.07% | 0.07% | 0.00% |
| Public | 11.75% | 9.83% | -1.92% |
Stock Price Returns
1 Year Stock Returns
- Bajaj Finance Ltd has given 1 Year returns of -3.15 %
- 1 Lakh invested in August 2023 would have become 0.9685 Lakhs in August 2024
5 Year Stock Returns
- Bajaj Finance Ltd has given 5 Year returns of 114.09 %
- 1 Lakh invested in August 2020 would have become 2.14 Lakhs in August 2024
0% returns in 3 years
- From August 2021 stock price of Bajaj Finance is in the range of Rs. 7000 & still now in August 2024 stock price is in the range of Rs 7000 also
- At this point company is going to give breakout & stock might touch Rs 14,000 level within 2 years .
Company Valuation
- Current PE- 29.3
- Median PE- 44.4
- Company is Undervalued: As the Current PE is less than Median PE so we can say that the company is undervalued.
Should you Invest ?
- As the Bajaj Finance is one of the largest NBFC in India & spread across Pan India.
- Fundamentals of the company is really strong & it has lowest NPA across all the other NBFC in India.
- Revenue & Net Profit is consistently increasing over the last 5 years In face the Revenue & Net Profit is sitting at all time high numbers so clearly there is no any thing that is lagging behind for the stock price to grow in the long run
- It is just the short term correction in the stock & due to the sectoral rotation of the money from one sector to another.
- After the FED Rate cut in upcoming month then we can see positive impact on the Banking & NBFC stocks as well.
- For the last 3 years stock price has given 0% returns to their investors & in the same duration company’s Net Profit has gone double & so the Revenue.
- Stock price is in the consolidated zone for the last 3 years & it is going to breakout & stock can double from this point of time & can reach a level of Rs 14,000 within 2 years.
- You can keep invested in this company & the fresh entries also can be made in Bajaj Finance Ltd.
Check Out this- How Adani Power gave 11x returns in 5 years ?
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about Bajaj Finance Ltd.
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
- If you have any further queries, please comment below. We will be happy to answer all your questions.
- If you like this information, share the article with as many people as possible
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