Bajaj Finserv Ltd. Fundamental Analysis (BSE: BAJAJFINSV.BO)
Bajaj Finserv Ltd. Fundamental Analysis (BSE: BAJAJFINSV.BO)
Bajaj Finserv Ltd. (BSE: BAJAJFINSV.BO) shows weak financial fundamentals with a PE ratio of 31.49, profit margin of 8.32%, and ROE of 9.41%. The company generates $1219.6B in annual revenue with strong year-over-year growth of 25.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -189.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BAJAJFINSV.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBAJAJFINSV.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakBAJAJFINSV.BO trades at a premium to fair value.
Growth Score
ModerateBAJAJFINSV.BO shows steady but slowing expansion.
Financial Health Score
ModerateBAJAJFINSV.BO shows balanced financial health with some risks.
Profitability Score
WeakBAJAJFINSV.BO struggles to sustain strong margins.
Key Financial Metrics
Is BAJAJFINSV.BO Expensive or Cheap?
P/E Ratio
BAJAJFINSV.BO trades at 31.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BAJAJFINSV.BO's PEG of 4.87 indicates potential overvaluation.
Price to Book
The market values Bajaj Finserv Ltd. at 2.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.40 times EBITDA. This is generally considered low.
How Well Does BAJAJFINSV.BO Make Money?
Net Profit Margin
For every $100 in sales, Bajaj Finserv Ltd. keeps $8.32 as profit after all expenses.
Operating Margin
Core operations generate 23.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.41 in profit for every $100 of shareholder equity.
ROA
Bajaj Finserv Ltd. generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bajaj Finserv Ltd. generates limited operating cash flow of $-257.56B, signaling weaker underlying cash strength.
Free Cash Flow
Bajaj Finserv Ltd. generates weak or negative free cash flow of $-261.77B, restricting financial flexibility.
FCF Per Share
Each share generates $-163.73 in free cash annually.
FCF Yield
BAJAJFINSV.BO converts -8.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How BAJAJFINSV.BO Stacks Against Its Sector Peers
| Metric | BAJAJFINSV.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.49 | 21.07 | Worse (Expensive) |
| ROE | 9.41% | 647.00% | Weak |
| Net Margin | 8.32% | -1592.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 912.43 | Weak Liquidity |
| ROA | 0.00% | -579.00% (disorted) | Weak |
BAJAJFINSV.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bajaj Finserv Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
156.50%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
165.35%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-167.82%
Industry Style: Value, Dividend, Cyclical
Declining