Bajaj Finserv Ltd

NSE: BAJAJFINSV BSE: 532978

₹1772

(1.27%)

Tue, 26 May 2026, 01:02 pm

Market Cap2800.64B

PE Ratio29.14

Dividend0.06

Finance

Life/Health Insurance

24.5K

Bajaj Finserv Analysis

Pros

Cons

Bajaj Finserv is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
No need to calculate the sustainability of Bajaj Finserv's dividends as it is not paying a notable one for India.
No need to calculate the sustainability of Bajaj Finserv's dividends in 3 years as they are not expected to pay a notable one for India.
Bajaj Finserv is not paying a notable dividend for India, therefore no need to check if the payments are stable.
Bajaj Finserv's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
Bajaj Finserv's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Bajaj Finserv's earnings are expected to grow significantly at over 20% yearly.
Bajaj Finserv's earnings growth is expected to exceed the India market average.
Bajaj Finserv's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Bajaj Finserv's earnings are expected to exceed the low risk growth rate next year.
Bajaj Finserv's earnings are expected to increase by more than the low risk growth rate in 3 years time.
Bajaj Finserv's net income is expected to increase by more than 50% in 2 years time.
Performance (ROE) is expected to be above the current IN Insurance industry average.
An improvement in Bajaj Finserv's performance (ROE) is expected over the next 3 years.

Cons

Bajaj Finserv is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Bajaj Finserv's revenue is expected to increase but not above the 50% threshold in 2 years time.
Bajaj Finserv's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Bajaj Finserv's revenue growth is positive but not above the India market average.

Pros

Bajaj Finserv is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Bajaj Finserv is profitable, therefore cash runway is not a concern.
Bajaj Finserv is profitable, therefore cash runway is not a concern.
Low level of unsold assets.

Cons

Operating cash flow is negative therefore debt is not well covered.
Debt is not covered by short term assets, assets are 0.1x debt.
Bajaj Finserv's long term commitments exceed its cash and other short term assets.
The level of debt compared to net worth has increased over the past 5 years (173.6% vs 206.8% today).
Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
Bajaj Finserv's level of debt (206.8%) compared to net worth is high (greater than 40%).

Pros

Cons

The average tenure for the Bajaj Finserv board of directors is less than 3 years, this suggests a new board.
Sanjiv's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

Pros

Cons

Pros

Bajaj Finserv's year on year earnings growth rate has been positive over the past 5 years.
Bajaj Finserv used its assets more efficiently than the IN Insurance industry average last year based on Return on Assets.
Bajaj Finserv's earnings growth has exceeded the IN Insurance industry average in the past year (4.7% vs 1.5%).

Cons

Bajaj Finserv's 1-year earnings growth is less than its 5-year average (4.7% vs 15.9%)
Bajaj Finserv's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Bajaj Finserv has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

Pros

Bajaj Finserv is good value based on assets compared to the IN Insurance industry average.
Bajaj Finserv is good value based on expected growth next year.
Bajaj Finserv is good value based on earnings compared to the IN Insurance industry average.
BSE:532978 is up 8.5% outperforming the Insurance industry which returned 3.6% over the past month.
BSE:532978 is up 8.5% along with the India market (8%) over the past month.

Cons

Bajaj Finserv's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Bajaj Finserv's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Bajaj Finserv is overvalued based on earnings compared to the India market.
532978 underperformed the Insurance industry which returned -7.3% over the past year.
532978 underperformed the Market in India which returned -14.5% over the past year.