Bajaj Finance Ltd

NSE: BAJFINANCE BSE: 500034

₹1094.20

(0.08%)

Sat, 22 Aug 2026, 07:06 pm

Market Cap (in Cr)679500.97

PE Ratio33.60

Dividend0.55

Finance

Finance/Rental/Leasing

24.5K

Bajaj Finance Analysis

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are thoroughly covered by earnings (9x coverage).
Dividends after 3 years are expected to be thoroughly covered by earnings (10.1x coverage).
Dividends per share have been stable in the past 10 years.

Cons

Bajaj Finance's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
Bajaj Finance's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Bajaj Finance's earnings are expected to grow significantly at over 20% yearly.
Bajaj Finance's earnings growth is expected to exceed the India market average.
Bajaj Finance's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Bajaj Finance's earnings are expected to increase by more than the low risk growth rate in 3 years time.
Bajaj Finance is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Performance (ROE) is expected to be above the current IN Consumer Finance industry average.
An improvement in Bajaj Finance's performance (ROE) is expected over the next 3 years.
Bajaj Finance's revenue growth is expected to exceed the India market average.

Cons

Bajaj Finance's earnings are expected to decrease over the next year.
Bajaj Finance's net income is expected to increase but not above the 50% threshold in 2 years time.
Bajaj Finance's revenue is expected to increase but not above the 50% threshold in 2 years time.
Bajaj Finance's revenue is expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

Pros

Bajaj Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Bajaj Finance is profitable, therefore cash runway is not a concern.
Bajaj Finance is profitable, therefore cash runway is not a concern.
Debt is covered by short term assets, assets are 1.3x debt.
Bajaj Finance's cash and other short term assets cover its long term commitments.
The level of debt compared to net worth has been reduced over the past 5 years (554.9% vs 337.6% today).
Low level of unsold assets.

Cons

Operating cash flow is negative therefore debt is not well covered.
Bajaj Finance's level of debt (337.6%) compared to net worth is high (greater than 40%).

Pros

The average tenure for the Bajaj Finance board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Rajeev's compensation has been consistent with company performance over the past year, both up more than 20%.
The tenure for the Bajaj Finance management team is about average.

Cons

Rajeev's remuneration is higher than average for companies of similar size in India.
Bajaj Finance individual insiders have sold more shares than they have bought in the past 3 months.

Pros

Cons

Pros

Bajaj Finance's 1-year earnings growth exceeds its 5-year average (31.6% vs 28.3%)
Bajaj Finance has delivered over 20% year on year earnings growth in the past 5 years.
Bajaj Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
Bajaj Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (31.6% vs 11%).

Cons

Bajaj Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

Pros

NSEI:BAJFINANCE is up 13.4% outperforming the Consumer Finance industry which returned 10.3% over the past month.
NSEI:BAJFINANCE is up 13.4% outperforming the market in India which returned 8% over the past month.

Cons

Bajaj Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Bajaj Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Bajaj Finance is overvalued based on assets compared to the IN Consumer Finance industry average.
Bajaj Finance is poor value based on expected growth next year.
Bajaj Finance is overvalued based on earnings compared to the IN Consumer Finance industry average.
Bajaj Finance is overvalued based on earnings compared to the India market.
BAJFINANCE underperformed the Consumer Finance industry which returned -28.8% over the past year.
BAJFINANCE underperformed the Market in India which returned -14.5% over the past year.