Bajaj Finance (BAJFINANCE.NS)
Financials · NSE · India
Fundamentals
Valuation and ratings
Bajaj Finance trades at ₹1,037.60, close to the ₹1,174.63 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 82 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 33.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Bajaj Finance
Bajaj Finance Limited operates as a deposit-taking non-banking financial company in India. The company offers financing for various products, such as consumer electronics, furniture, digital products, lifestyle products, lifecare services, e-commerce purchases, retail spends, and two and three-wheelers; and personal, unsecured, home, secured, gold, and car loans. It also provides secured and unsecured loans to micro, small, and medium enterprises; loans against property, mutual funds, insurance policies, and shares; developer finance and lease rental discounting services; commercial vehicle financing; and new and used car financing, and tractor financing. In addition, the company offers commercial and rural lending; public and corporate deposits; loans against securities; micro-finance and auto financing lending; proprietary trading, ESOP financing, and broking and margin trade financing services. Further, it distributes life, health, and general insurance products. The company was formerly known as Bajaj Auto Finance Limited and changed its name to Bajaj Finance Limited in September 2010. The company was incorporated in 1987 and is based in Pune, India. Bajaj Finance Limited is a subsidiary of Bajaj Finserv Ltd.
BAJFINANCE.NS passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Bajaj Finance (BAJFINANCE.NS) undervalued?
Against our discounted cash flow estimate of ₹1,174.63, BAJFINANCE.NS at ₹1,037.60 is 13% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is BAJFINANCE.NS's P/E ratio?
BAJFINANCE.NS trades at 33.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.