Bajaj Finance Ltd.
Banking · NSE
52-week range
₹788 – ₹1,103
From 52w high
-13.3%
RSI (14)
58.1
vs SMA 50 / 200
↑ 50 · ↓ 200
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.
- ✓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.
- ✗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.
- ·FY26 results (April 29, 2026) showed full-year PAT of ₹19,332 crore (+15% YoY) and Q4 PAT of ₹5,465 crore (+22% YoY); AUM crossed ₹5 lakh crore; a special dividend of ₹6 per share was proposed — though at least one report noted Q4 PAT missed analyst estimates.
- ·Motilal Oswal published a Neutral rating with a stated target of ₹1,000 (April 30, 2026) — the named broker's view, cited for context; management flagged AI-driven transformation initiatives as a forward growth lever in post-results commentary.
- ·Credit costs were described as lower in Q4, which drove part of the profitability improvement; the question of whether credit-cost normalization is structural or cyclical is a key variable for FY27 earnings trajectory.
- ?Does Bajaj Finance's 31.3x trailing PE reflect a durable structural advantage in consumer lending data and distribution, or does it embed assumptions about credit-cost levels that may prove optimistic in a slower economic cycle?
- ?Given that FCF has been negative across all tracked years, what conditions — regulatory capital requirements, credit market access, or securitization volumes — would need to shift for the company to generate positive free cash flow without sacrificing AUM growth?
- ?The 26.8% 5-year revenue CAGR has been partly driven by a rising-leverage balance sheet; how much of the historical ROE of 17.91% is attributable to financial leverage versus underlying asset-quality discipline?
- ?With the stock below its 200-DMA and 13.35% off its 52-week high while fundamentals have continued to improve, what would explain this divergence — sector-rotation dynamics, valuation re-rating, or macro concerns around NBFC funding costs?
PE
31.3
Forward PE
19.3
ROE
+17.9%
Profit margin
+43.4%
D/E
313.41
Dividend yield
+0.6%
Quality score
51/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
0/5 yrs
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.Analysis generated 10 May 2026.