Bajaj Finance Limited

Financial Services — Credit Services · NSE

₹982.10+₹16.85 (+1.75%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, 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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bajaj Finance Limited operates as a deposit-taking non-banking financial company in India.

IndustryCredit Services

SectorFinancial Services

Employees71,613

Annual revenue₹49,665 Cr

How does it make money?

Turns over ₹49,665 Cr a year. Of every ₹100 of sales, about ₹38 reaches shareholders as profit. Each of its 71,613 employees supports ₹69.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹69.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. 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 ROE15.2%

What is the outlook?

29 analysts covering the stock expect revenue to grow about 21.7% and earnings to grow about 22.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.7%

Est. earnings growth+22.4%

Analysts29

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 +84% while net margin moved -10% 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+84%

Margin effect-10%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 30.2x already prices in growth
• P/E is close to its own historical median of 36.5x
✗ P/B of 5.36x is a steep premium to book

Quality vs. Valuation

Company Quality

85/ 100

Excellent

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

Valuation

44/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

30.2x

3Y Median

36.5x

40 monthly readings · mean 35.6x · range 27.9x–42.6x

Sector Median

15.9x

median of 3 sector peers

🟢Current valuation is approximately 17% below its 3y median of 36.5x. 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 89% above the peer median of 15.9x.

vs. its own history

Fair

36.5x median over 40 months · -17%

vs. sector peers

Expensive

15.9x median of 3 peers · +89%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

1.65

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

Return on equity is falling
ROE has dropped from 21.2% to 16.7% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 89% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 21.2% to 16.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

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

1Revenue growth stays above 17% a year✓ 22.6% CAGR
Latest reported year was 26.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 15%✓ 16.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 36.5x✓ 30.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹6.11 L Cr

Large Cap

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

P/E (Trailing)

30.2x

Fair

Fairly valued against the generic band

P/B Ratio

5.36x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹32.57

Profitable

Profitable on a per-share basis

ROE

16.7%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

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

Debt/Equity

3.15x

High

High leverage

Revenue Growth (YoY)

26.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.55%

Modest

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

Free Cash Flow

-₹66,751 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

19.5x

Improving

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

Operating Margin

61.6%

Good

Healthy core-business profitability

Net Margin

43.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

980.8 / 1034.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26,967 Cr	₹34,326 Cr	₹41,480 Cr	₹49,665 Cr	+22.6%
PAT (Net Profit)	₹11,508 Cr	₹14,451 Cr	₹16,638 Cr	₹19,017 Cr	+18.2%
EPS	₹18.96	₹23.6	₹26.82	₹30.51	+17.2%
ROE	21.2%	18.8%	17.2%	16.7%	—
Total Debt	₹1.64 L Cr	₹2.18 L Cr	₹2.75 L Cr	₹3.53 L Cr	+29.0%
Free Cash Flow	-₹42,990 Cr	-₹70,881 Cr	-₹68,873 Cr	-₹66,751 Cr	—

🟢 Revenue has grown at 22.6% a year over 3 years.

🟢 PAT (Net Profit) has grown at 18.2% a year over 3 years.

🟢 EPS has grown at 17.2% a year over 3 years.

🔴 ROE has fallen from 21.2% to 16.7% over 3 years (-4.5 pts).

🔴 Total Debt has grown at 29.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5.60 L Cr

Total Liabilities

₹4.43 L Cr

Cash & Equivalents

₹4,016 Cr

Operating Cash Flow

-₹65,790 Cr

Capex

-₹961 Cr

Shareholding (proxy)

Institutional Holding

27.9%

Insider Holding

56.5%

Corporate Actions

Next Earnings

19 Oct 2026

Dividend Rate

₹5.4

Ex-Dividend Date

30 Jun 2026

Analyst Consensus

Recommendations

27 Buy · 4 Hold · 4 Sell

Target Price (Mean)

₹1,170.2

+19.2% vs CMP

Target Range

₹827 – ₹1,340

Peer Comparison

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

Recent News

4 mixed2 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 Finance Q2 preview: Profit may jump 29%, NII 24% as strong loan growth lifts earnings

The Economic Times, 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

Bajaj Finance share price target raised by JPMorgan after Q2 update; Stock turns positive YTD - CNBC TV18

LinkedIn, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sensex falls 252 points, Nifty settles below 22,650; Bajaj Finance, M&M see big cut

IndiaIPO, 14 Oct

Bajaj Finance stock: Price-to-earnings ratio reaches 30.15 for Bajaj Finance stock

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.

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

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 3 tripwires holding · see Key things to watch ↑