Bajaj Finserv Limited

Banking/Finance Sector

Talent Corner HR Services Pvt. Ltd

Profile- Equity Research (Finance)

Submitted By- Rina Jage
College- Kohinoor Business School, Mumbai
Email ID- rinajage23@gmail.com
Financial Services in India
Bajaj Alliance General Insurance
Bajaj Alliance Life Insurance
Earnings Per Share (EPS)
Chart for 5 years
 PE Ratio

Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Bajaj Finserv:
P/E of 37.89 = ₹8903.30 ÷ ₹234.99 (Based on the trailing twelve months
to September 2019.)

How Growth Rates Impact P/E Ratios

Generally speaking, the rate of earnings growth has a profound impact
on a company’s P/E multiple. Earnings growth means that in the future
the ‘E’ will be higher. That means even if the current P/E is high, it will
reduce over time if the share price stays flat. Then, a lower P/E should
attract more buyers, pushing the share price up.
It’s nice to see that Bajaj Finserv grew EPS by a stonking 25% in the last
year. And its annual EPS growth rate over 5 years is 18%. So we’d
generally expect it to have a relatively high P/E ratio.
Dividend Declared
 Conclusion
Bajaj Finserv Limited (BFS) is the holding company for the various financial services
businesses under the Bajaj Group. It serves millions of customers in the financial services
space by providing solutions for asset acquisition through financing, asset protection
through general insurance, family protection and income protection in the form of life and
health insurance and retirement and savings solutions. BFS holds 55.13% stake in Bajaj
Finance Limited (BFL) and 74% stake each in Bajaj Allianz General Insurance Company
Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC). Apart from
financial services, BFS is also active in wind energy generation. Bajaj Finance Ltd
(formerly known as Bajaj Auto Finance Ltd) is a Non-Banking Finance Company engaged
in consumer finance, SME finance, commercial lending and wealth management. BAGIC is
a general insurance joint venture between BFS and Allianz SE, Germany. The Allianz Group
is one of the world’s leading insurers and asset managers with more than 88 million retail
and corporate customers. BFS holds 74% stake and Allianz SE holds 26% stake in BAGIC.
BALIC is life insurance joint venture between BFS and Allianz SE. BFS holds 74% stake
and Allianz SE holds 26% stake in BALIC. Bajaj Finserv was formed in April 30, 2007 as a
result of its demerger from Bajaj Auto Limited as a separate entity to focus purely on the
financial services business of the group. The process of demerger was completed in
February 2008. The wind power project, the stakes in the life and general insurance
companies and consumer finance along with their respective assets and liabilities got
vested in Bajaj Finserv Limited. In addition to that, cash and cash equivalent of Rs 800
crore (then market value) was also transferred to the company. The demerger has
enabled investors to hold separate focused stocks and also facilitated transparent
benchmarking of the companies to their peers in their respective industries. On 20 April
2009, Bajaj Finserv and Allianz Global Investors AG (Allianz GI), the asset management
subsidiary of Allianz SE, signed an agreement to set up as asset management Joint
Venture Company in India. Allianz GI and Bajaj Finserv will hold a 51% and 49% state,
respectively, in the equally managed proposed venture. On 10 November 2009, Bajaj
Finserv announced that the Reserve Bank of India has issued to the company a Certificate
of Registration dated 30 October 2009 under section 45-IA of the RBI Act, 1934 to carry on
the business of a Non-Banking Financial Institution (NBFC) (non-deposit taking).On 5 May
2010, Bajaj Finserv announced that Bajaj Auto Finance (BAFL) has launched its
Construction Equipment (CE) financing and Retail Loan against Securities (LAS) business
in the month of April 2010. 04 March 2011, Bajaj Finserv said in a clarification to the stock
exchanges that the company does not have any plan, at present or in the foreseeable
future, to sell its equity to Berkshire Hathaway group of companies. 
 Link for Calculation of ROI
https://drive.google.com/file/d/1gPq
qchif6jps2xK4OJlrJtNOLXeO_2_w/vie
w?usp=sharing