financial_services

Bajaj Finance

BAJFINANCE · Nifty 50

₹958.4

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 30.1 (44%ile of 5Y range 23-39). Trading near median.

Sector Positionfinancial_services sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score92/100 (STRONG). 2 positive flags, 3 concerns.

Historical Context149 similar technical setups. Average outcome: -9.8% decline. 0% positive.

Revenue TrendRevenue growing at 26.8% YoY. Strong revenue growth — 26.8% YoY

Bank HealthROA 3.40% · PB 5.0 · Asset growth 20.1%.

Fundamental

92/100

STRONG

Trust

90/100

Verification

Coverage

89/100

HIGH

Quick Take

Bajaj Finance scores 92/100 on fundamentals (strong). Bajaj Finance: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 92/100 · STRONG · 3 signals detected

DuPont Analysis

ROE 16.7% broken into three drivers. Each shows how efficiently the company generates returns.

ROE16.7%=

37.9%Net Margin

0.1xTurnover

4.9xLeverage

ROE of 16.69% is moderate leverage-driven and stable. Net margin of 37.9% × asset turnover of 0.09x × leverage of 4.9x. Low asset turnover is normal for banks.

What This Means

Net margin of 37.9% means the company keeps ₹37.9 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.09x means the company generates ₹0.09 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 4.9x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

Net

37.9%

improving

Financial Health

Peer Comparison

Bajaj Finance is compared against 10 peers in the financial_services sector.

360ONE AADHARHFC ABCAPITAL ANANDRATHI ANGELONE APTUS BAJAJFINSV BAJAJHLDNG BSE CAMS

Bank Metrics

Return on Assets

3.40%

Benchmark: >1%

Efficiency Ratio

62.1%

Lower is better

Asset Growth

+20.1%

Year over year

PB Ratio

5.0x

Price to book

ROA of 3.4% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 5.01x — trading above book. Premium valuation — market pricing in high growth expectations.

Key Watchpoints

🟢

Breaks above ₹1006 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹910 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 30.1

Valuation normalization

🟢

Financial_Services sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (33.1%) than equity (17.9%)

✅ Strong ROA: ROA of 3.40% — above 1% benchmark for banks

✅ Strong Loan Book Growth: Assets growing 20.1% — loan book expansion

Risk Flags

🔴 1 Critical⚠️ 2 Warning✅ 2 Positive5 total flags

🔴Operating cash flow significantly below net income

Cash Flow

OCF is only -3.5x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Working capital changes are 151% of operating cash flow

Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Price/Sales: 13.6x — expensive on revenue basis

Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

✅Minimal unusual items — clean earnings

Earnings Quality

Profits are from core operations, not one-offs. High quality.

✅High promoter holding: 56%

Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

30.1HIGH

P/B Ratio

5.0HIGH

ROE

17.9%HIGH

Market Cap

₹57098759.0L CrHIGH

From 52W High

87% of high

Promoter Holding

56.5%MODERATE

Institutional

26.8%

Sector Peers

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