Fact based stock research
Bajaj Finserv (NSEI:BAJAJFINSV)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Bajaj Finserv stock research in summary

bajajfinserv.in

ANALYSIS: With an Obermatt Combined Rank of 11 (worse than 89% compared with investment alternatives), Bajaj Finserv (Other Financial Services, India) shares have lower financial characteristics compared with similar stocks. Shares of Bajaj Finserv are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives), and are riskily financed (Safety Rank of 8, which means above-average debt burdens) but show above-average growth (Growth Rank of 51). ...read more

RECOMMENDATION: A Combined Rank of 11, is a sell recommendation based on Bajaj Finserv's financial characteristics. As the company Bajaj Finserv shows low value with an Obermatt Value Rank of 31 (69% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 51% of comparable companies (Obermatt Growth Rank is 51). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 8 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Bajaj Finserv, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	31
Growth Rank	51
Safety Rank	8
Combined Rank	11

Country	India
Industry	Other Financial Services
Index	BSE Sensex, Independent Boards Growth Markets, CNX Nifty 50
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Bajaj Finserv

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	9	11	32	31
GROWTH
GROWTH	79	87	77	51
SAFETY
SAFETY	13	8	19	8
SENTIMENT
SENTIMENT	n/a	56	56	^new
360° VIEW
360° VIEW	n/a	29	47	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Mar-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Bajaj Finserv is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	9	11	32	31
GROWTH
GROWTH	79	87	77	51
SAFETY
SAFETY	13	8	19	8
COMBINED
COMBINED	19	25	33	11

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Bajaj Finserv the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Bajaj Finserv shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Bajaj Finserv. Price-to-Sales (P/S) is 72, which means that the stock price compared with what market professionals expect for future sales is lower than 72% of comparable companies, indicating a good value concerning to Bajaj Finserv's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 8, meaning that dividends are expected to be lower than for 92% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 69% of alternatives (only 31% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 83% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Bajaj Finserv's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Bajaj Finserv could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Bajaj Finserv looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	9	45	65	72
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	19	11	13	17
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	17	31	31
DIVIDEND YIELD
DIVIDEND YIELD	32	7	10	8
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	9	11	32	31

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Bajaj Finserv; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), Bajaj Finserv shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Bajaj Finserv. Sales Growth has a value of 78 which means that currently professionals expect the company to grow more than 78% of its competitors. Profit Growth with a value of 58 and Capital Growth with a rank of 55 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 35, which means that stock returns have recently been below 65% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. Bajaj Finserv has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Bajaj Finserv, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	53	68	81	78
PROFIT GROWTH
PROFIT GROWTH	n/a	58	82	58
CAPITAL GROWTH
CAPITAL GROWTH	n/a	53	75	55
STOCK RETURNS
STOCK RETURNS	100	100	33	35
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	87	77	51

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Bajaj Finserv.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 8 (better than 8% compared with alternatives), the company Bajaj Finserv has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Bajaj Finserv is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Bajaj Finserv. Liquidity is at 28, meaning that the company generates less profit to service its debt than 72% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 36, meaning the company has an above-average debt-to-equity ratio. It has more debt than 64% of its competitors. Finally, Refinancing is at a rank of 26 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 74% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 8 (worse than 92% compared with alternatives), Bajaj Finserv has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Bajaj Finserv because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	17	40	31	36
REFINANCING
REFINANCING	34	1	34	26
LIQUIDITY
LIQUIDITY	26	26	43	28
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	13	8	19	8

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Bajaj Finserv and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	21	46	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	29	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	48	48	^new
MARKET PULSE
MARKET PULSE	n/a	91	93	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	56	56	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bajaj Finserv.
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