Bajaj Finance Ltd is a non-banking financial company that operates in the retail financing sector. The services offered by the company are financial services for products like two-wheelers, consumer durables, insurance services and even personal loans. For clients with a high net worth, the firm also offers IPO financing.
The company is currently trying to diversify its product range by venturing into semi-urban and rural markets. Read on to learn more about the financial status to make an investment decision.
Bajaj Finance Financial Analysis
The company has a customer base of 69.14 million. This subsidiary of Bajaj Finserv Ltd. belongs to the NBFC sector. The company added 3.84 million more customers in the first quarter of 2024 further strengthening the company.
The finance company has grown at a Compound Annual Growth Rate of 19.5% over the past 5 years. The banking company has more than 3,800 offices all over the country with more than 1.6 million distributors. The firm has achieved an AAA/Stable rating for long term borrowing and A1 for short-term borrowing.
The following table shows the annual growth of the company’s earnings annually.
| Category (12 Months) | March 2023 (In Crores) | March 2022 (In Crores) |
| Net Revenue From Operations | Rs 34,582 | Rs 26,972.45 |
| Earnings Per Share | Rs 170.37 | Rs 105.39 |
Bajaj Finance Share Price Analysis
This Bajaj Finance share price chart gives a comprehensive picture of the performance of the company in the market.
Promoter Holding is 54.78%, 17.56% shares are with Foreign institutions, 17.44% are with Domestic institutions, 10.17% are with Public and 0.05% are with other entities. The current TTM Earnings Per Share is 222.69 which has increased by 24.96% Year on Year.
Bajaj Finance share price saw a 52-week high share price of Rs 8,192 and 52-week low of Rs 5632. Bajaj Finance is one of those companies that have the highest TTM EPS growth rate.
Is it Worth Investing in Bajaj Finance Shares?
Out of 29 expert analysts, 66% suggest that the Bajaj Finance share is an immediate buy, 14% consider it as a share that is outperforming, 10% suggest holding it, 7% suggest holding it whereas only 3% consider it to be an underperforming stock.
As per the trend, the company is set to declare an increase of more than 20% in the net profit driven by a 30-35% rise in net interest income. The firm seems to be a safe investment as the share price price has gone up by 26.11% over the past 1 year.
Therefore, all these numbers suggest that Bajaj Finance shares are a good deal for those who are looking for safe long-term investment options.
Bottom Line
The key evaluating factors mentioned above suggest that investing in the firm is a safe option for those who expect a long-term return. Over the past 5 years, the share price of the company has soared. However, like every firm in the market, Bajaj Finance is privy to market fluctuations and is subject to market risk.
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