COMPANY PROFILE OF BAJAJ FINANCE LTD , NSE, INDIA
Bajaj Finance Limited is a Non-Banking Finance Company engaged in consumer finance, SME finance and commercial lending. Bajaj Financial Solutions Limited, a wholly owned subsidiary of Bajaj Finserv Limited is engaged in wealth management and advisory business. Bajaj Finance Ltd focuses on six business verticals: (i) Consumer Lending, (ii) SME Lending, (iii) Commercial Lending, (iv) Rural Lending, (v) Deposits, and (vi) Partnerships and Services. Its consumer lending products include two-wheelers and three-wheelers finance, consumer durables finance, digital products finance, retailer finance, salaried personal loans, e-commerce consumer finance, e-commerce seller finance and home loan. It’s SME lending products include loan against property and business loans. Its commercial lending products include loan against securities and financial institutions group lending business. Its rural lending products include personal loans cross-sell, salaried personal loans and gold loans. It offers retail fixed deposits and wholesale fixed deposits. It is engaged in life insurance distribution, general insurance distribution and mutual fund distribution.
|Chairman||Mr Rahul Bajaj||Vice Chairman||Nanoo Pamnani||Managing Director||Rajeev Jain|
|Date of Listing||09-Feb-95||Vice Chairman||Sanjiv Bajaj||Website||www.bajajfinserv.in/finance|
|Date of Inc.||25-Mar-87||Registered Office Address||C/o Bajaj Auto Ltd, Mumbai – Pune Road, Akurdi, 411035, Pune, Maharashtra, India.|
Bajaj Finance Stock Fundamental View:
Bajaj Finance Ltd. (‘Bajaj Finance’, ‘BFL’ or ‘the Company’) enjoyed yet another strong year of performance aided by a diversified product mix, robust volume growth, prudent operating cost and effective risk management. With assets under management of Rs 60,194 crores, BFL has emerged as one of the leading diversified NBFCs in the country. BFL continued to be the largest consumer durables lender in India in FY2017 with 14100 dealers across country. BFL was the largest financier of Bajaj motorcycles and three-wheelers in FY2017 and operates at the premises of approximately 3,661 Bajaj dealers and sub-dealers across the country. In April 2016, BFL expanded its EMI card financing propositions for its customers in new retail Categories like fashion, travel, insurance, small appliances, digital & lifestyle products and on ecommerce platforms, Steps are taken for moving towards healthcare Financing too. IPO Financing was started in FY2017 to add another product offering in the Loan against Securities business. Three new industry verticals, viz. Corporate Finance, Financial Institutions Group (FIG) lending business and Light Engineering were launched in FY2016.
Bajaj Finance Ltd. (BFL): Performance Highlights, F.Y 2017:
- New loans booked exceeded 10 million in numbers, which is a first for the Company.
- Assets under management increased by 36% to Rs 60,194 crore.
- Receivables under financing rose by 33% to Rs 56,832 crore.
- Total income grew by 36% to Rs 10,003 crore.
- Profit before tax increased by 43% to Rs 2,818 crore and l Profit after tax increased by 44% to Rs 1,837 crore.
- Loan losses and provisions were Rs 818 crore. BFL’s net NPA stood at 0.44%, and was among the lowest in the NBFC industry.
- Capital adequacy as on 31 March 2017 was 20.30%, which is not only higher than the previous year but also well above the RBI norms. Tier I capital adequacy was 14.56%.
Overview of BAJAJ FINANCE STOCK :
|Asset Under Management (Rs. Cr.)||17517||24061||32410||44229||60194||36|
|Operating Income (Rs. Cr.)||3,092||4,032||5,382||7,294||9,977||32|
|PAT (Rs. Cr.)||591||719||898||1279||1837||33|
|Adjusted EPS (Rs.)||11.94||14.45||17.96||23.88||34.01||28.70|
The capital adequacy ratio, also known as capital to risk-weighted assets ratio, measures a bank’s financial strength by using its capital and assets. Generally, a bank with a high capital adequacy ratio is considered safe and likely to meet its financial obligations. Standard Car ratio to be maintained by Indian Banks and NBFC’s is 12%. Bajaj finance was able to maintain a good CAR of 20.3 %A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of Bond finance principal has remained ‘past due’ for more than 90 days. NPA is used by financial institutions that refer to loans that are in jeopardy of default. Standard NPA ratio is 0.50%. Bajaj Finance was able to consistently maintain its ratio at lower levels indicating better process for giving loans.
|Provisions and Contingencies||303.12||355.67||451.71||664.19||724.87||1,090.29|
|PBT & Exceptional Items||602.22||871.6||1,091.16||1,356.94||1,964.57||2,817.52|
|Profit before Tax||602.22||871.6||1,091.16||1,356.94||1,964.57||2,817.52|
|Profit after Tax||406.44||591.31||719.01||897.87||1,278.52||1,836.55|
|Long Term Borrowings||6,407.86||7,503.08||10,477.76||18,273.6||25,286.97||33,115.96|
|Other Non-Current Liabilities||60.79||106.6||1,055.20||1,549.99||2,484.17||3,394.71|
|Loans (Non – Current Assets)||6,569.21||9,548.19||13,852.42||18,119.7||24,778.55||32,028.10|
|Other Non-Current Assets||140.91||163.17||1,092.73||1,563.02||2,173.66||2,976.56|
|Cash and Bank Balances||59.83||416.37||776.81||228.62||1,329.15||356.52|
|Short Term Loans & Advances||5,938.69||7,428.87||9,808.02||13,874.8||19,644.37||27,141.99|
|Other Current Assets||76.01||68.2||78.72||165.84||211.82||323.76|
|Cash Flow Statement|
|Cash Flow from Operations||-4,568.06||-3,250.87||-6,086.57||-7,147.14||-9,870.83||-10,500.23|
|Cash Flow from Investing Activities||-50.91||-56.37||-95.81||-365.42||-685.9||-2,987.61|
|Cash Flow from Finance Activities||3,807.13||3,663.78||6,542.82||6,953.19||11,656.20||12,515.95|
|Net Cash Inflow/Outflow||-811.84||356.54||360.44||-559.37||1,099.47||-971.89|
|Key Financial Ratios|
|Dividend per Share (Rs)||2.4||3||3.2||3.6||5||3.6|
|Net Margin (%)||18.04||18.57||17.38||16.16||17.43||18.36|
|Net Sales Growth (%)||55.35||42.95||30.41||33.46||35.52||36.8|
|Net Profit Growth (%)||64.58||45.49||21.6||24.88||42.39||43.65|
|Book Value Growth (%)||48.17||66.58||19.06||20.27||52.61||31.07|
|Price / Earnings||8.29||9.67||12.39||22.81||29.02||34.96|
|Price / Book Value||1.67||1.71||2.23||4.27||5.07||6.69|
Summary: Bajaj finance ltd has given a robust fundamental performance consistently and would be a good buy for a long term.
At the time of writing this post, Bajaj Finance was at 1499.40
|Bajaj Finance’s Support &Resistance level (Spot: 1499.40)|
|Time||Support 2||Support 1||Pivot||Resistance 1||Resistance 2|
|Intraday(5 – 15 minutes chart)||1454.90||1477.15||1499.4||1515.15||1531|
|daily chart (short term)||1436||1430||1467.7||1539.20||1570|
|weekly chart (Mid-term)||1370||1407.5||1459.1||1548.80||1600|
|Moving Average of Bajaj Finance|
|Moving Average type||MA-5||MA-10||MA-15||MA-20||MA-50||MA-100||MA-200||MA-15 > MA-50 (Days since trend)||MA-50 > MA-200 (Days since trend)|
|Analysis||Both SMA’s & EMA’s Indicate Strong Uptrend in BFL.|
|Technical Indicators & Oscillators For Bajaj Finance|
|Moving average Convergence and Divergence (MACD) :|
|Frequency ( Chart)||MACD||Signal Line||Description|
|Daily||30.25||20||MACD Above Zero line for 127 days & above signal line for 3 days|
|Weekly||106.9||98.4||MACD Above Zero line for 24 days & above signal line for 24 days|
|Monthly||233.95||198.3||MACD Above Zero line for 49 days & above signal line for 44 days|
|Bollinger Band :|
|Frequency ( Chart)||Upper – middle – lower Band||Description|
|Daily||1476.50 – 1406.40 – 1336||Price above Upper Band For 3 days and Middle Band For 8 days|
|Weekly||1507.66 – 1282.80 – 1058||Price above Middle Band For 25 days|
|Frequency ( Chart)||RSI||Description|
|Daily||72.4||RSI is in overbought territory for 1 day and crossed central line 5 days back|
|Weekly||80.95||RSI is in overbought territory for 19 days and crossed central line 23 days back|
|Monthly||78.3||RSI is in overbought territory for 7 days and crossed central line 66 days back|
|Current Price has Crossed Daily and highest PSAR Point of 1362.95 and implies uptrend|