Bajaj Finance Ltd.
NSE: BAJFINANCEBajaj Finance Ltd.: A 30-second snapshot
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).
P/E
29.1
Forward P/E
18.0
ROE
+17.9%
Debt / Equity
313.41
Profit Margin
+43.4%
Div. Yield
+0.6%
5Y ROE > 15%
4/5
5Y FCF > 0
0/5
Quality
56/100
News
4 headlines · 0 positive · 0 negative
Bajaj Finance Limited Issues Secured / Unsecured Redeemable Non-Convertible Debentures of INR 10,250 Million on Private Placement Basis - marketscreener.com
marketscreener.com
Bajaj Finance Limited Allots Secured Redeemable Non-Convertible Debentures of INR 28,924.2 Million on Private Placement Basis - marketscreener.com
marketscreener.com
Bajaj Finance, Aadhar, Aavas, SHFL, MMFSL, L&T Finance, Aptus Value: Share price targets - Business Today
Business Today
Here's Why We Think Bajaj Finance (NSE:BAJFINANCE) Is Well Worth Watching - simplywall.st
simplywall.st
Recent context
- ·Bajaj Finance filed two NCD issuances in May 2026 — ₹10,250 million and ₹28,924.2 million on a private placement basis — consistent with the company's ongoing wholesale debt funding model for AUM expansion.
- ·The 52-week drawdown stands at -19.33%, with the stock's nearest support cluster identified at ₹889–₹887 and resistance at ₹946–₹975.
- ·Business Today reported analyst share price targets for Bajaj Finance alongside sector peers in May 2026; the news flow surrounding the stock has been predominantly operational rather than event-driven.
Strengths
- +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.
Weaknesses
- −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.
Open questions
- ?Does the 5-year ROE persistence of 17.9% reflect a structural moat in consumer and SME lending, or is it dependent on a sustained low-credit-cost environment that may not persist?
- ?How does Bajaj Finance's wholesale funding dependency and rising debt trend compare to peers during past RBI tightening cycles, and what was the historical impact on net interest margins?
- ?The forward PE of 18.0x implies significant earnings growth relative to the trailing 29.1x — what are the key assumptions (AUM growth, credit costs, NIM stability) underlying that compression?
- ?Given that the stock has underperformed its own ROE leadership over 12 months, what factors — macro, regulatory, or sector rotation — could explain the divergence between fundamental quality and price performance?
Peer comparison: Banking
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BAJFINANCE | Bajaj Finance Ltd.You're viewing | 29.1 | +17.9% | 53 |
| Industry avg | across 5 peers | 28.3 | +13.8% | 41 |
| ICICIBANK | ICICI Bank Ltd. | 16.9 | +16.4% | 64 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.7 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 27.9 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 65.1 | +11.3% | 20 |
Technical state
Current price
₹889.40
SMA 50
₹908.00
SMA 200
₹963.76
RSI (14)
42.7 (neutral)
From 52w high
-19.3%
1Y return
-0.9%
3M return
-7.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 313.4 with a rising 5-year debt trend. At this leverage level, structurally expected for NBFCs, a credit-cost spike or RBI regulatory tightening would have an amplified impact on net interest margins and net profitability.
- highFCF-positive years: 0 across all tracked periods. Bajaj Finance funds AUM growth entirely through wholesale debt markets; no internal liquidity buffer exists if funding costs spike or credit market access tightens.
- mediumCurrent price of ₹889.4 is 2.0% below the 50-DMA (₹908) and 7.7% below the 200-DMA (₹963.76). The stock has returned -0.95% over 12 months and is down 7.59% over 3 months, remaining below both long-run moving averages.
- mediumTrailing PE of 29.1x is among the highest in the 6-stock Banking/NBFC peer group (ICICIBANK 16.9x, HDFCBANK 16.7x, AXISBANK 15.1x). Quality score of 53 ranks 2nd of 6, meaning the valuation premium is only partially supported by relative quality standing.
- lowNews volume is sparse — only 4 articles in the tracked window, all rated neutral. The two most substantive items are NCD issuance filings; limited editorial coverage reduces signal confidence in either direction.
Cross-section contradictions
- 5-year revenue CAGR of 26.8% and earnings CAGR of 21.4% are among the strongest in the peer group, yet the stock has returned -0.95% over 12 months and trades 7.7% below its 200-DMA — a divergence between structural growth trajectory and recent price behaviour.
- ROE of 17.9% is the highest among all 6 tracked peers (ICICIBANK 16.4%, HDFCBANK 13.8%, AXISBANK 13.2%), yet the stock ranks last in 12-month price return within the group, reflecting a disconnect between fundamental quality leadership and recent market pricing.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 6 Jun 2026 · rotates through NIFTY 500 every ~5 days