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: 34/100
Bajaj Finance Ltd.
Banking
Quality Score: 56/100
At a glance
| Metric | BAJAJFINSV | BAJFINANCE |
|---|---|---|
| Quality Score | 34/100 | 56/100 |
| P/E (trailing) | 27.9 | 29.1 |
| Forward P/E | 18.5 | 18.0 |
| ROE | +14.6% | +17.9% |
| Profit margin | +6.6% | +43.4% |
| Debt-to-equity | 256.36 | 313.41 |
| Dividend yield | +0.08% | +0.62% |
| 1Y price return | -14.4% | -0.9% |
| From 52w high | -22.4% | -19.3% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | — | 1.94 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Bajaj Finserv (₹1,703.2) is a diversified financial-services holding company spanning lending, life insurance, general insurance, and asset management. Trading 12.6% below its 200-DMA and down 14.45% over 12 months, the stock has a quality score of 23 — 5th of 6 in its Banking peer group — with ROE of 14.6%, zero FCF-positive years recorded, and a rising debt trend. Trailing PE of 27.90 sits above most banking peers while fundamental quality metrics rank near the bottom of the cohort.
Bajaj Finance trades at ₹889.4, down 0.95% over 12 months and below both the 50-DMA (₹908) and 200-DMA (₹963.76), with RSI at 42.66. The company reported trailing PE of 29.1x, ROE of 17.9% — highest in its 6-peer Banking/NBFC group — and 5-year revenue CAGR of 26.8%, alongside a debt-to-equity of 313.4 and zero FCF-positive years across tracked history. Mean analyst rating is 1.94 across 35 analysts on a 1–5 scale (lower = more constructive).
Pros
- ✓Forward PE of 18.51 represents a 34% discount to the trailing PE of 27.90, implying analyst consensus expects meaningful earnings acceleration in the near term relative to recent history.
- ✓Profit margin of 6.57% and 5-year earnings CAGR of 5.7% reflect consistent, if modest, profitability across a multi-segment financial conglomerate that includes insurance, lending, and asset management operations.
- ✓Bajaj Life Insurance delivered a record ₹1,939 crore bonus in a recent period (per available news), indicating scale and competitive activity within the life insurance segment despite broader industry challenges.
- ✓Q4 FY26 net profit rose 5% YoY, sustaining a positive earnings trajectory even as Q3 FY26 showed flat profit alongside higher revenue, suggesting cost or provisioning dynamics were managed through the year.
- ✓ROE of 17.9% ranks first among 6 tracked Banking/NBFC peers (ICICIBANK 16.4%, HDFCBANK 13.8%, AXISBANK 13.2%), demonstrating relative capital efficiency within the sector.
- ✓5-year revenue CAGR of 26.8% and earnings CAGR of 21.4% reflect sustained compounding of both topline and bottom line over an extended period.
- ✓Profit margin of 43.4% is high for a diversified NBFC, indicating pricing power and cost discipline relative to loan book size.
- ✓Forward PE of 18.0x compresses materially from the trailing PE of 29.1x, reflecting analyst consensus expectations of significant near-term earnings growth.
Cons
- ✗Quality score of 23 ranks 5th of 6 among Banking sector peers; ICICIBANK (64), BAJFINANCE (53), AXISBANK (50), and HDFCBANK (50) all score materially higher, indicating relative weakness in composite fundamental quality within the peer group.
- ✗ROE of 14.6% has not exceeded 15% in any tracked year, FCF-positive years recorded is zero, and debt trend is rising — consistency score of 29 reflects persistent capital intensity with no demonstrated free cash generation across the available historical window.
- ✗Price of ₹1,703.2 is 12.6% below the 200-DMA (₹1,949.79) and 3.4% below the 50-DMA (₹1,763.89); the stock is down 14.45% over 12 months, 10.91% over 3 months, and 22.41% from its 52-week high.
- ✗5-year revenue growth of 5.3% and earnings growth of 5.7% are below the pace implied by a trailing PE of 27.90; the second-highest PE in the peer cohort is not supported by the second-highest growth or quality metrics.
- ✗FCF-positive years is zero across all tracked periods; AUM growth is funded entirely through wholesale debt, creating dependency on uninterrupted capital market access.
- ✗Debt-to-equity of 313.4 with a rising 5-year debt trend means earnings and capital ratios are highly sensitive to any adverse movement in borrowing costs or RBI regulatory requirements.
- ✗Current price sits 7.7% below the 200-DMA (₹963.76) and 2.0% below the 50-DMA (₹908), with the stock down 7.59% over 3 months — a sustained period of underperformance relative to its own moving averages.
- ✗Trailing PE of 29.1x is the highest in the peer group versus ICICIBANK (16.9x), HDFCBANK (16.7x), and AXISBANK (15.1x), a premium that requires continued outsized earnings delivery to sustain.
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