Bajaj Housing Finance Limited
Bajaj Housing Finance Limited Fundamental Analysis
Bajaj Housing Finance Limited (BAJAJHFL.NS) shows strong financial fundamentals with a PE ratio of 29.51, profit margin of 23.61%, and ROE of 12.41%. The company generates $105.0B in annual revenue with strong year-over-year growth of 25.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BAJAJHFL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakBAJAJHFL.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakBAJAJHFL.NS trades at a premium to fair value.
Growth Score
ExcellentBAJAJHFL.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakBAJAJHFL.NS carries high financial risk with limited liquidity.
Profitability Score
WeakBAJAJHFL.NS struggles to sustain strong margins.
Key Financial Metrics
Is BAJAJHFL.NS Expensive or Cheap?
P/E Ratio
BAJAJHFL.NS trades at 29.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BAJAJHFL.NS's PEG of 5.96 indicates potential overvaluation.
Price to Book
The market values Bajaj Housing Finance Limited at 3.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -6.05 times EBITDA. This is generally considered low.
How Well Does BAJAJHFL.NS Make Money?
Net Profit Margin
For every $100 in sales, Bajaj Housing Finance Limited keeps $23.61 as profit after all expenses.
Operating Margin
Core operations generate 29.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.41 in profit for every $100 of shareholder equity.
ROA
Bajaj Housing Finance Limited generates $2.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bajaj Housing Finance Limited generates limited operating cash flow of $-34.22B, signaling weaker underlying cash strength.
Free Cash Flow
Bajaj Housing Finance Limited generates weak or negative free cash flow of $-34.29B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.12 in free cash annually.
FCF Yield
BAJAJHFL.NS converts -4.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How BAJAJHFL.NS Stacks Against Its Sector Peers
| Metric | BAJAJHFL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.51 | 19.09 | Worse (Expensive) |
| ROE | 12.41% | 843.00% | Weak |
| Net Margin | 23.61% | 3730.00% | Weak |
| Debt/Equity | 4.44 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.00 | 661.68 | Weak Liquidity |
| ROA | 2.14% | -21651.00% (disorted) | Weak |
BAJAJHFL.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bajaj Housing Finance Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.44%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
131.49%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
24.84%
Industry Style: Value, Dividend, Cyclical
High Growth