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.
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