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: 42/100
At a glance
| Metric | BAJFINANCE | JIOFIN |
|---|---|---|
| Quality Score | 56/100 | 42/100 |
| P/E (trailing) | 29.1 | 97.5 |
| Forward P/E | 18.0 | 53.5 |
| ROE | +17.9% | +1.2% |
| Profit margin | +43.4% | +57.8% |
| Debt-to-equity | 313.41 | 16.29 |
| Dividend yield | +0.62% | +0.21% |
| 1Y price return | -0.9% | -18.9% |
| From 52w high | -19.3% | -30.5% |
| 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 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).
Jio Financial Services (JIOFIN) trades at ₹234.95, carrying a trailing PE of 97.49x — the highest among its 6 Banking/Financial sector peers — against an ROE of 1.21% and 5-year earnings CAGR of -14%. The stock is 30.5% below its 52-week high, below both its 50-DMA (₹239.98) and 200-DMA (₹279.33), and has declined 18.95% over the past 12 months. Five-year revenue has grown at 39.4% CAGR, but that scale has not yet translated into consistent bottom-line returns or free cash flow.
Pros
- ✓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.
- ✓Revenue growth has compounded at 39.4% over 5 years, reflecting rapid top-line expansion as the business scales its financial services platform.
- ✓Profit margin of 57.77% indicates that when revenue does reach the income statement, a large proportion is retained — suggesting cost discipline at the operating level.
- ✓Forward PE of 53.52x, while still elevated, is meaningfully lower than the trailing 97.49x, embedding an expectation of earnings acceleration in the next 12 months.
- ✓Quality score of 41 ranks 4th of 6 among Banking/Financial peers, ahead of HDFCLIFE (20) and BAJAJFINSV (23).
Cons
- ✗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.
- ✗ROE of 1.21% ranks last among 6 sector peers (range: 11.28%–17.91%) and has not crossed 15% in any recorded year — the business has not yet demonstrated the return-on-equity profile typical of its peer group.
- ✗Debt-to-equity of 16.29 with a rising debt trend and FCF positive in only 1 of available years raises the question of whether leverage is self-funding or dependent on continued capital infusions.
- ✗Trailing PE of 97.49x is 46% above the next-highest peer (HDFCLIFE at 66.20x) and more than 6x the lowest-PE peer (AXISBANK at 15.09x), reflecting a significant valuation premium relative to current profitability.
- ✗The stock has been below its 200-DMA and is down 30.5% from its 52-week high, with 3-month price change of -8.28%, continuing a sustained downward price trend over 12 months.
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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.