BAJAJ FINANCE LTD.

Bajaj Finance Limited is one of the leading non-banking financial companies in India, which is a subsidiary of Bajaj
Finserv Limited. It is engaged in lending across retail, SME, and commercial customers and accepts public and
corporate deposits.

Investment Rationale and Key Highlights

1) Assets under Management (AUM) grew by 35.00% YoY to Rs. 145,092 Cr., largely driven by Mortgages
business.
2) Profit before tax grew by 36.90% YoY, while Net Profit increased by about 61.00% YoY, largely attributable to
lower tax rates.
3) The Net Interest Income also surged 46.5% YoY to Rs. 4522 Cr.
4) Deposit book stood at Rs. 20235 Cr., which increased by about 76.00% YoY, with 7 different channels to grow
deposits.
5) The company raised Rs. 4083 Cr. under ECB facility with various banks in Q3FY20. The company also raised
Rs. 8500 Cr. through Qualified Institutional Placements in November 2019.
6) In Q3FY20, the company added 182 locations, taking total presence to 2179 in India thus expanding its
distribution network.

Management of the Company

Key Executive Personnel

1) Rahul Bajaj
Rahul Bajaj, born on 10 June 1938, is the Non-Executive Chairman of our Company. He is
recognised as one of the most successful business leaders of India. He heads the Bajaj
Group of companies, which is a leader in a variety of manufactured products and financial
services in India and abroad, including motorised two and three-wheelers, home appliances,
electric lamps, wind energy, special alloy and stainless steel, material handling equipment,
travel, general and life insurance and investment and consumer finance.

2) Sanjiv Bajaj
Sanjiv Bajaj, born on 2 November 1969, is the Non-Executive Vice- Chairman of our
Company. He is B.E. (Mech), first class with distinction from the University of Pune, M.Sc
(Manufacturing Systems Engg) with distinction from the University of Warwick, UK and MBA
from Harvard Business School, USA.

3) Rajeev Jain
Rajeev Jain, (born on 06 September 1970), is the Managing Director of our Company. He is
a management graduate and has more than 22 years of experience in the consumer
lending industry. Rajeev has been associated with our Company for over eight years. At
Bajaj Finance Limited, Rajeev has charted an ambitious growth path for the Company.

The company has pretty stable management which is not in a position to change in the coming future, The KEP are
qualified enough to lead the company to a good future.

SWOT Analysis

Strengths

1) AUM growth robust in weak macroeconomic scenario

2) NIMs expanded on increasing yields
3) Strong geographical presence
4) Increasing cross sells to existing customers
Weaknesses

1) Dip in new customer acquisition

2) Declining growth of the consumer durables sector
3) Across product segments, self employed remains to be troubled

Opportunities

1) Expanding Rural market

2) Improvement in consumer lifestyle

Threats

1) Slight increase in GNPA and NNPA levels

2) Weak macroeconomic conditions
3) Gold loan business is hard to gain scale and profitability

Competitive Analysis

S. No. Company Market Cap (Rs. Cr.) P/E Ratio PAT Growth ROA ROE
1 Bajaj Finance Ltd. 7.66 38.46 44.11 3.41 20.27
2 Cholamandalam Investment 4.18 23.27 35.53 2.81 20.65
Finance Ltd.
3 Aditya Birla Capital 183.66 522.07 1,350.24 0.93 1.05
4 LT Finance Holding Ltd. 69.66 114.07 47.93 4.74 6.35
5 Edelweiss Financial Services 49.65 152.96 10.58 4.43 5.62