Bajaj Finserv Ltd. (BAJAJFINSV) - Stock Overview & Analysis

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BAJAJFINSVBajaj Finserv Ltd.

₹2059.3-0.48%

Market Cap

₹3,10,494.49 Cr

Stock P/E

247.44

ROCE

13.20%

ROE

29.52%

Book Value

₹374.60

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Shareholding

Holdings

Distribution

Promoter

Institution

Public

Others

Financials

YoY Net Sales

EPS Growth

Operating Margin

From Last Concall

POSITIVES

•
Consolidated PAT hit an all-time high, with total income rising 13% YoY to 35,451 crores and PAT up 30% to 2,789 crores.
•
BAGIC delivered resilient growth with GWP up 9% and PAT up 15%, supported by ROE of about 21.4%; despite a higher combined ratio, the business remains competitive.

NEGATIVES

•
BAGIC’s underwriting losses and higher acquisition costs keep the combined ratio above 100% (103.6%), signaling near-term profitability headwinds despite growth.
•
BALIC’s persistency metrics show a dip in the 13-month bucket, tied to base effects from higher ticket sizes in FY24 and tax changes, which could weigh on near-term retention.

Peers Summary

Sector Leader

Bajaj Finserv Ltd. showcases strong profitability metrics with a high ROE and solid revenue growth compared to peers, despite its high valuation. Authum Investment & Infrastructure Ltd. stands out as an undervalued growth pick with exceptional efficiency, while Cholamandalam Financial Holdings Ltd. exhibits high profitability but suffers from high valuation metrics. Overall, Bajaj Finserv maintains a competitive edge in profitability despite a high PE ratio.

Key Points

• Bajaj Finserv has the highest ROE and solid revenue growth metrics.
• Authum Investment offers an attractive valuation with high profitability.
• Cholamandalam, while highly profitable, has very high PE ratio indicating overvaluation.

Top Performers

Authum Investment & Infrastructure Ltd.

Best growth pick with low valuation metrics and high profitability.

Bajaj Finserv Ltd.

Strong profitability metrics with high ROE and revenue growth.

Cholamandalam Financial Holdings Ltd.

High profitability but overvalued with a PE ratio of 512.70.