Bajaj Finserv review on 3rd April 2024
Bajaj Finserv Ltd. is a leading Indian financial services company focused on lending, asset management, wealth management, and insurance. The company is known for its robust business model and has a significant presence in the finance sector.
Target Price: 1661- 1696-1750
Market Performance
Financials
- Market Cap: ₹ 2,62,561.62 Cr1
- Net Profit: ₹ 732.52 Cr1
- Operating Revenue: ₹ 1,076.47 Cr1
- Earnings Per Share (EPS): ₹ 7.341
- Price to Earnings (P/E) Ratio: 224.091
- Price to Book (P/B) Ratio: 40.541
- Dividend Yield: 0.05%1
Valuation
The stock’s market price justifies its intrinsic value, indicating a fair valuation. However, the high P/E and P/B ratios suggest that the stock is quite expensive relative to its earnings and book value.
Efficiency
The company could improve upon its asset employment, suggesting there is room for better utilization of its assets to generate revenue.
Financial Health
The financials indicate some weaknesses, particularly in the ability to sustain adverse conditions. This is an area for potential investors to watch closely.
Ownership
- Promoter Holding: 60.69%1
- Ownership Stability: Stable ownership slightly missing the benchmark.
SWOT Analysis
- Strengths: Strong market presence and a diversified financial services portfolio.
- Weaknesses: High valuation ratios and potential inefficiencies in asset utilization.
- Opportunities: Expansion into new financial sectors and leveraging technology for better service delivery.
- Threats: Market volatility and regulatory changes can impact performance.
Technical Analysis
- Moving Averages: Price above short, medium, and long term moving averages.
- Oscillators: Indicators suggest a neutral to positive outlook.
Index Presence
The company is present in 28 Indices, including NIFTY50, NIFTY100, and NIFTY500, which reflects its strong market reputation.
Bajaj Finserv has been involved in several recent and upcoming projects:
Recent Projects:
- Open Architecture Management Services: Launched in 2023, this service offers debt management, asset reconstruction, back-office operations, and allied services for various financial institutions1.
- ‘BEYOND’ Brand Identity: Unveiled for their flagship employability initiative, ‘BEYOND’ aims to make graduates employable across a range of industries through customized training programs2.
Future Projects:
- Investment in Start-ups: Bajaj Finserv plans to invest in start-ups with a long-term growth perspective, focusing on sectors such as fintech, Insurtech, financial services ecosystem, technology (including AI, ML, robotics, automation), data analytics, healthcare, and consumer tech1.
- Livelihood Enhancement Programs: Their programs aim to create opportunities for youth in rural areas, focusing on goat and sheep rearing, crop enhancement, livestock management, and enterprise creation3.
For more detailed information, you can refer to the Bajaj Finserv Annual Report 2022-234 and other resources provided by the company. Please note that future projects are subject to change and depend on various factors, including market conditions and strategic decisions by the company.