Bajaj Finserv Ltd.

Financial Services — Financial Conglomerates · NSE

₹1,729.00−₹3.00 (−0.17%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Bajaj Finserv Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bajaj Finserv Ltd., through its subsidiaries, provides financial services in India. The company operates through Life Insurance, General Insurance, Windmill, Retail Financing, and Investments and Others segments.

IndustryFinancial Conglomerates

SectorFinancial Services

Employees1,13,732

Annual revenue₹1.37 L Cr

How does it make money?

Turns over ₹1.37 L Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹41 left at the operating level before interest, tax and depreciation. Each of its 1,13,732 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 17.2% and earnings to grow about 17.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.2%

Est. earnings growth+17.2%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +86% while net margin moved -18% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+86%

Margin effect-18%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 12.6% is moderate

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.4x

3Y Median

37.2x

40 monthly readings · mean 36.4x · range 28.3x–42.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 26% below its 3y median of 37.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 62% above the peer median of 17.0x.

vs. its own history

Cheap

37.2x median over 40 months · -26%

vs. sector peers

Expensive

17.0x median of 4 peers · +62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.2x

PEG

1.81

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 170% against revenue growth of 86% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 26% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 62% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 17% a year✓ 22.9% CAGR
Latest reported year was 19.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 39%✓ 41.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 11%✓ 12.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 37.2x✓ 27.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹2.77 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

27.4x

Fair

Fairly valued against the generic band

P/B Ratio

3.55x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹62.99

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

2.56x

High

High leverage

Revenue Growth (YoY)

19.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

12.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹56,750 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

18.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

40.2%

Good

Healthy core-business profitability

Net Margin

6.5%

Average

Average bottom-line conversion

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1760.6 / 1893.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹73,846 Cr	₹99,880 Cr	₹1.21 L Cr	₹1.37 L Cr	+22.9%
EBITDA	₹29,690 Cr	₹40,675 Cr	₹49,228 Cr	₹56,406 Cr	+23.9%
EBITDA Margin	40.2%	40.7%	40.8%	41.1%	—
PAT (Net Profit)	₹6,417 Cr	₹8,148 Cr	₹8,872 Cr	₹9,801 Cr	+15.2%
EPS	₹40	₹50.7	₹55	₹61	+15.1%
ROE	13.8%	13.5%	12.3%	12.6%	—
Total Debt	₹1.68 L Cr	₹2.29 L Cr	₹2.84 L Cr	₹3.61 L Cr	+29.2%
Free Cash Flow	-₹40,700 Cr	-₹66,938 Cr	-₹63,614 Cr	-₹56,750 Cr	—

🟢 Revenue has grown at 22.9% a year over 3 years.

🟢 EBITDA has grown at 23.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 41.1% over 3 years.

🟢 PAT (Net Profit) has grown at 15.2% a year over 3 years.

🟢 EPS has grown at 15.1% a year over 3 years.

🔴 ROE has fallen from 13.8% to 12.6% over 3 years (-1.2 pts).

🔴 Total Debt has grown at 29.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7.58 L Cr

Total Liabilities

₹6.18 L Cr

Cash & Equivalents

₹3,599 Cr

Operating Cash Flow

-₹55,301 Cr

Capex

-₹1,448 Cr

Shareholding (proxy)

Institutional Holding

15.0%

Insider Holding

63.9%

Corporate Actions

Next Earnings

03 Nov 2026

Dividend Rate

₹1.3

Ex-Dividend Date

30 Jun 2026

Analyst Consensus

Recommendations

11 Buy · 0 Hold · 2 Sell

Target Price (Mean)

₹2,366.23

+36.9% vs CMP

Target Range

₹1,710 – ₹2,640

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

3 mixed3 general

Bajaj Finance Q2 results 2026: Date, time, preview, expectations, share price outlook | Target, stop-loss, rationale

Livemint, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Bajaj Housing Share Price - Live NSE: BAJAJHFL Stock Price & Chart

Upstox, 17 Oct

BAJAJFINSV Outlook for the Week

Equitypandit, 09 Oct

Bajaj Finserv stock trades at a 27.45 price-earnings ratio

ad-hoc-news.de, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Why Bajaj Finance and Bajaj Finserv Shares Fell Today: RBI's Draft Proposal Triggers Sell-Off

India Infoline, 07 Aug

Bajaj Finserv Shares Jump 6% on Strong Q1 Profit

Rediff MoneyWiz, 31 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Risk

MiddlingBusiness Quality · Profitability · Valuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑