BAJAJ FINANCE

Overview
Bajaj Finserv Limited is an Indian financial services company focused on lending, asset
management, wealth management, and insurance. The company has been credit for its easy
EMI options that enable users to buy anything from electronics to consumer durables to
automobiles on easy monthly installments. The company also has substantial business
penetration in SMEs, commercial and rural lending. The retail base in the company's capital
portfolio comprises 10.5%.
The company reported an increase of 42% YoY, profit after tax at Rs. 1,347 Cr. while net interest
income declined by 0.5% to Rs. 4,659 Cr. from Rs.4,684 Cr. in Q4 FY20. Loan losses and
provisions for Q4 FY21 stood at Rs. 1,231 Cr. in comparison to Rs. 1,954 Cr. in Q4 FY20. The gross
non-performing assets (NPA) declined to 1.79% as of March 2021 from 2.86% in the previous
quarter.

Shareholding Pattern:

Category Number of Shares Percentage of Capital

Promoter and Promoter 338,169,045 56.20

Group

Resident Individuals Bodies 51,604,554 8.58

Corporates/NBFCs

Mutual Funds/Financial 50,165,920 8.34

Institutions/Banks

Foreign Institutional Investor/ 127,317,017 21.16

Foreign Portfolio Investor

Non Resident 4,719,447 0.78

Individuals/Foreign National

Alternate Investment Funds 3,626,422 0.60

Others 18,764,254 3.12

Total 601,689,069 100.00

Management:

Rahul Bajaj
Chairman Emeritus from 1 May 2021 (Non- Executive Director up to 30 April 2021)
Rahul Bajaj, born on 10 June 1938, is the Non-Executive Director and was the founder Chairman
of our Company. He holds an Honours degree in Economics from Delhi University, a degree in
Law from Bombay University, and an MBA from Harvard Business School.

Sanjiv Bajaj
Chairman (from 1 August 2020)
Sanjiv Bajaj is a Non-Executive Chairman of our Company since 1 August 2020. He has a 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.

Madhur Bajaj
Non-Executive Director
Mr. Bajaj is an alumnus of Doon School, Dehradun. After obtaining his B.Com Degree from
Sydenham College, Bombay, in 1973, he did his MBA at the International Institute of
Management Development (IMD), Lausanne, Switzerland, in 1979

Rajeev Jain
Managing Director
Rajeev Jain is a management graduate and has more than 22 years of experience in the
consumer lending industry. Rajeev has been associated with Bajaj finance for over a decade.

Rajiv Bajaj
Non-Executive Director
Rajiv Bajaj graduated first in class, with distinction, in Mechanical Engineering from the
University of Pune in 1988, and then completed his masters in Manufacturing Systems
Engineering, with distinction, from the University of Warwick in 1991.

Dipak Poddar
Independent Director
Dipak Poddar, born on 9 November 1943, is a Non-Executive and Independent Director of our
Company. He is a Science Graduate and holds a Master’s Degree in Mechanical Engineering
from the Massachusetts Institute of Technology, Boston, USA.

Ranjan Sanghi
Independent Director
Ranjan Sanghi holds a bachelor’s degree in Commerce (Hons.) from the Sydenham College of
Commerce and Economics, University of Mumbai. He has been associated with the Company
since its incorporation

D.J. Balaji Rao

Independent Director
D J Balaji Rao holds a B.E. Degree in Mechanical Engineering from the University of Madras and
is an Associate Member of the Indian Institution of Industrial Engineering (AMIIIE). He attended
the advanced management program at the European Institute of Business Administration
(INSEAD) at Fontainebleau, France in 1990

Anami N Roy
Independent Director
Anami N Roy is a distinguished former Director General of Police, having served in the Indian
Police Service in Maharashtra and with the Government of India for over 38 years.

Dr. Naushad Forbes

Independent Director
Naushad Forbes is the Co-chairman of Forbes Marshall, India's leading Steam Engineering and
Control Instrumentation firm. He chairs the Steam Engineering Companies within the group.

Dr Gita Piramal
Independent Director
Gita Piramal is currently engaged in academic research at the University of Oxford. An
entrepreneur and businesswoman, author, and journalist, she has a Ph.D. in business history
from Bombay University

Omkar Goswami
Independent Director
Omkar Goswami has taught and researched economics for 18 years at Oxford, Delhi School of
Economics, Harvard, Tufts University, Jawaharlal Nehru University, Rutgers University, and the
Indian Statistical Institute, New Delhi.
SWOT Analysis

STRENGTHS
WEAKNESSES
● Increasing revenue and profits for
past 2 years ● Financials are weak
● None of the promoter’s holding is ● Debt is on the higher side
pledged ● Ratios like PE, PEG, Debt equity are
● Bajaj finance is the market leader in not good
BFSI industry with highest market ● High risk as seen by conservative
cap, sales and net profit families

OPPORTUNITIES THREATS

● Company deeply invested in cloud ● High PE Ratio

and data infrastructure to modernise
its operations
● High income urban families
● Increasing competition and entry of
foreign finance firms in the Indian
market
● Strict economic measures by
government and RBI

Competitive Analysis
Following are the top competitors of the company
1. Muthoot Finance
2. Bajaj Holdings
3. Shriram Trans

Company M.cap(cr) PE ROE (%) Net Net Sales Dividend Debt To

Name Ratio Profit Yield Equity

Bajaj 361,761.25 81.84 11.97 4,419 26,668 0.17 3.57

Finance
Muthoot 60,554.50 15.92 26.52 3,168 9,683 0.99 3.46
Finance

Bajaj 39,257.12 10.76 10.77 22 393 1.13 0.00

Holdings

Shriram 36,015.71 14.41 13.84 2,501 16,562 0.35 5.20

Trans

Conclusion:
By analyzing the company through SWOT analysis, Trend analysis, and comparatives analysis
shows that the company has maintained its growth even through the ongoing Pandemic. Its
share price is also around the all-time high mark. It has a dividend yield of 0.17. Although
according to the PE ratio of the company and that of the industry it can be indicated that it's
priced a bit higher than it should be. The stock is trading at a price to book ratio of 9.90. The
company has however a slightly lower return on equity than its competitors. The company has
maintained its profitability and dividend payout in the previous years and can be a good
investing stock for the long term.