financial_services
Bajaj Finserv
BAJAJFINSV · Nifty 50
₹1,764.6
Price 2026-06-17
At a Glance
Fundamental
92/100
STRONG
Trust
90/100
Verification
Coverage
89/100
HIGH
Quick Take
Bajaj Finserv scores 92/100 on fundamentals (strong). Bajaj Finserv: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 92/100 · STRONG · 3 signals detected
DuPont Analysis
ROE 12.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 12.57% is moderate leverage-driven and stable. Net margin of 7.7% × asset turnover of 0.17x × leverage of 9.7x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.
What This Means
Net margin of 7.7% means the company keeps ₹7.7 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.17x means the company generates ₹0.17 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 9.7x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
100.0%
Operating
43.1%
Net
7.7%
Gross margin 100.0% → operating margin 43.1% → net margin 7.7%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Debt Sustainability
STRETCHEDInterest covered only 2.0x — stretched. Rising rates could pressure profitability.
Peer Comparison
Bajaj Finserv is compared against 10 peers in the financial_services sector.
Bank Metrics
Return on Assets
1.29%
Benchmark: >1%
Efficiency Ratio
92.3%
Lower is better
Asset Growth
+16.3%
Year over year
PB Ratio
3.5x
Price to book
ROA of 1.29% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 3.47x — trading above book. Premium valuation — market pricing in high growth expectations.
Key Watchpoints
Breaks above ₹1853 (+5%)
Trend reversal confirmation
Breaks below ₹1676 (-5%)
Further downside risk
PE reverts to 5Y median of 27.7
Valuation normalization
Financial_Services sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
OCF is only -5.6x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
Profits are from core operations, not one-offs. High quality.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes