BAJFINANCE vs JIOFIN
Side-by-side comparison of Bajaj Finance Ltd. and Jio Financial Services Ltd.. Descriptive only — not investment advice.
Bajaj Finance Ltd.
Banking
Quality Score: 56/100
Jio Financial Services Ltd.
Banking
Quality Score: 43/100
At a glance
| Metric | BAJFINANCE | JIOFIN |
|---|---|---|
| Quality Score | 56/100 | 43/100 |
| P/E (trailing) | 31.3 | 102.9 |
| Forward P/E | 19.3 | 56.7 |
| ROE | +17.9% | +1.2% |
| Profit margin | +43.4% | +57.8% |
| Debt-to-equity | 313.41 | 16.29 |
| Dividend yield | +0.57% | +0.20% |
| 1Y price return | +9.3% | -3.5% |
| From 52w high | -13.3% | -26.3% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.00 | — |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
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.
Jio Financial Services (JIOFIN) trades at ₹249.34, a PE of 102.9x (forward PE 56.7x), with a trailing ROE of 1.21% that has never exceeded 15% in any reported year. The company has scaled revenue at a 39.4% 5-year CAGR but earnings have simultaneously declined 14% over the same period, and Q4 FY26 net profit fell 14% YoY to ₹272 crore. The stock sits 13% below its 200-DMA and 26.25% off its 52-week high.
Pros
- ✓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.
- ✓Revenue CAGR of 39.4% over 5 years indicates the business is growing its top line at a rapid pace relative to the broader financial sector.
- ✓Profit margin of 57.77% is high in absolute terms, suggesting the operating model retains a large share of revenue even as absolute profit levels remain low relative to the equity base.
- ✓The stock is trading above its 50-DMA (₹249.34 vs ₹242.71) with RSI at 53.28, indicating near-term price stabilisation after a period of weakness.
- ✓Promoter holding increased to 49% following a 25-crore share allotment in April 2026, reflecting continued ownership commitment from the Reliance group.
Cons
- ✗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.
- ✗ROE of 1.21% has never surpassed 15% in any year on record; at current profitability levels, the equity base is generating minimal return, which is reflected in the quality score of 41 out of 100.
- ✗Earnings have declined at a 14% 5-year CAGR while the company carries a D/E of 16.29 — leverage is rising (debt trend: rising) while returns on that leveraged capital are compressing.
- ✗JIOFIN ranks last among 6 Banking/Financial peers on both PE (102.9x vs sector range of 15x–70x) and ROE (1.21% vs peer range of 11%–18%), placing it at the bottom of the quality and valuation spectrum within its comparison group.
- ✗Q4 FY26 profit declined 14% YoY to ₹272 crore; FCF has been positive in only 1 of the available reporting years, and the consistency score of 40 points to uneven financial delivery.
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