Bajaj Finance Limited
Bajaj Finance Limited Fundamental Analysis
Bajaj Finance Limited (BAJFINANCE.BO) shows moderate financial fundamentals with a PE ratio of 35.19, profit margin of 23.71%, and ROE of 18.60%. The company generates $760.6B in annual revenue with strong year-over-year growth of 26.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BAJFINANCE.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBAJFINANCE.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateBAJFINANCE.BO shows balanced valuation metrics.
Growth Score
ExcellentBAJFINANCE.BO delivers strong and consistent growth momentum.
Financial Health Score
WeakBAJFINANCE.BO carries high financial risk with limited liquidity.
Profitability Score
ModerateBAJFINANCE.BO maintains healthy but balanced margins.
Key Financial Metrics
Is BAJFINANCE.BO Expensive or Cheap?
P/E Ratio
BAJFINANCE.BO trades at 35.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BAJFINANCE.BO's PEG of -22.58 indicates potential undervaluation.
Price to Book
The market values Bajaj Finance Limited at 6.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.73 times EBITDA. This signals the market has high growth expectations.
How Well Does BAJFINANCE.BO Make Money?
Net Profit Margin
For every $100 in sales, Bajaj Finance Limited keeps $23.71 as profit after all expenses.
Operating Margin
Core operations generate 31.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.60 in profit for every $100 of shareholder equity.
ROA
Bajaj Finance Limited generates $3.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bajaj Finance Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Bajaj Finance Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
BAJFINANCE.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-22.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How BAJFINANCE.BO Stacks Against Its Sector Peers
| Metric | BAJFINANCE.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.19 | 19.09 | Worse (Expensive) |
| ROE | 18.60% | 843.00% | Weak |
| Net Margin | 23.71% | 3730.00% | Weak |
| Debt/Equity | 3.17 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.19 | 661.68 | Weak Liquidity |
| ROA | 3.54% | -21651.00% (disorted) | Weak |
BAJFINANCE.BO 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 Finance Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
151.19%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
199.59%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-164.46%
Industry Style: Value, Dividend, Cyclical
Declining