BAJAJFINSV vs BAJFINANCE
Side-by-side comparison of Bajaj Finserv Ltd. and Bajaj Finance Ltd.. Descriptive only — not investment advice.
Bajaj Finserv Ltd.
Banking
Quality Score: 41/100
Bajaj Finance Ltd.
Banking
Quality Score: 56/100
At a glance
| Metric | BAJAJFINSV | BAJFINANCE |
|---|---|---|
| Quality Score | 41/100 | 56/100 |
| P/E (trailing) | 30.3 | 31.3 |
| Forward P/E | 19.3 | 19.3 |
| ROE | +14.6% | +17.9% |
| Profit margin | +6.6% | +43.4% |
| Debt-to-equity | 256.36 | 313.41 |
| Dividend yield | +0.07% | +0.57% |
| 1Y price return | -10.6% | +9.3% |
| From 52w high | -17.2% | -13.3% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.94 | 2.00 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Bajaj Finserv is a financial holding company trading at ₹1,818.30, down 10.64% over the past 12 months and 7.74% below its 200-day moving average of ₹1,970.74. The trailing PE of 30.32 stands at a material premium to most Banking/Financial sector peers, while the quality score of 23 is the lowest among the 6 companies compared. Q4 FY26 net profit rose 5% YoY to ₹2,539 crore, with a ₹1.5 dividend declared.
Bajaj Finance (₹955.35) is India's largest consumer-focused NBFC with AUM crossing ₹5 lakh crore in FY26 and a 5-year revenue CAGR of 26.8%. The stock trades at a trailing PE of 31.3x — the highest among its 6 tracked Banking-sector peers — while sitting marginally below its 200-DMA (₹962.82) after a 9.26% 12-month return. ROE of 17.91% leads the peer group but FCF has been negative across all tracked years, reflecting the asset-growth-led nature of the business.
Pros
- ✓Forward PE of 19.32 is meaningfully lower than the trailing PE of 30.32, implying analyst consensus models a step-up in near-term earnings; 15 analysts covering the stock show a mean rating of 1.94 on a 1–5 scale (lower = more constructive).
- ✓Q4 FY26 net profit grew 5% YoY to ₹2,539 crore and revenue growth was reported as higher in Q3 FY26, indicating the underlying subsidiaries (Bajaj Finance, Bajaj Allianz) continue to generate earnings.
- ✓Price is above the 50-DMA of ₹1,805.06 with RSI at 54.42 (neutral zone), suggesting near-term selling pressure has eased relative to the intermediate-term trend.
- ✓At ₹1,818.30, the stock trades 10.4% below resistance at ₹2,033–₹2,045.50 and 8.3% above the nearer support at ₹1,597, establishing a quantifiable range for the current price context.
- ✓Highest ROE among 6 Banking-sector peers at 17.91%, with 4 of available years above the 15% threshold — demonstrating sustained return on equity above most large-cap banking comparables (ICICIBANK: 16.36%, HDFCBANK: 13.82%, AXISBANK: 13.15%).
- ✓5-year revenue CAGR of 26.8% and earnings CAGR of 21.4% are among the strongest compounding records in the large-cap NBFC/banking space, supported by FY26 PAT of ₹19,332 crore — a 15% year-on-year rise.
- ✓Forward PE of 19.3x represents a significant compression from the trailing PE of 31.3x, indicating analyst consensus projects meaningful earnings growth in the near term; AUM of ₹5 lakh crore provides a large base for interest income.
- ✓Quality score of 51 ranks 2nd of 6 peers in the Banking sector, above AXISBANK (50), HDFCBANK (47), HDFCLIFE (20), and BAJAJFINSV (23), with only ICICIBANK (64) rated higher.
Cons
- ✗FCF-positive years recorded are 0 in available history and ROE has not exceeded 15% in any tracked year (roeYearsAbove15 = 0), reflecting the capital-intensive nature of the holding structure with no demonstrated surplus cash generation.
- ✗Quality score of 23 ranks last (5th of 6) among sector peers; debt trend is classified as rising; consistency score of 35 points to uneven fundamental delivery over the measurement period.
- ✗Trailing PE of 30.32 is the second-highest in the peer group, behind only HDFCLIFE (69.7x), and stands at roughly 1.74x the PE of ICICIBANK (17.0x) and 1.79x that of AXISBANK (15.0x), a gap that demands sustained earnings acceleration to maintain.
- ✗Debt-to-equity of 256.36 reflects the leverage inherent to NBFC and insurance subsidiaries; 5-year revenue CAGR of 5.3% and earnings CAGR of 5.7% have not yet demonstrated the growth pace typically associated with such a valuation premium.
- ✗FCF has been negative in every tracked year — a structural feature of high-growth NBFC balance sheets but one that leaves the company entirely dependent on capital markets for growth funding; any disruption to debt or equity access would directly constrain AUM expansion.
- ✗Debt-to-equity stands at 313.4 with a rising trend over 5 years; while leverage is intrinsic to NBFC economics, the trajectory increases sensitivity to credit-cost cycles, interest-rate moves, and wholesale funding spreads.
- ✗Trailing PE of 31.3x is the highest among tracked peers (next closest: BAJAJFINSV at 30.3x, then HDFCLIFE at 69.7x which is insurance-sector-priced), yet 12-month price return of 9.26% and a 3-month decline of 0.83% indicate the premium has not translated to recent relative outperformance.
- ✗Price is 13.35% below its 52-week high and marginally below the 200-DMA (₹962.82 vs ₹955.35 current), with the nearest resistance at ₹975.7 and ₹1,037.4 — suggesting limited near-term technical tailwinds from moving-average positioning.
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