Bajaj Finserv is a non-banking finance company owned by the Bajaj group. The company finances infrastructural projects for sectors like roads, telecom, power, ports, railways, and so on. Additionally, Bajaj Finserv also caters to individuals by offering personal loans, small business loans, wealth management services, and investment planning services to name a few.
Founded in 2007, Bajaj Finserv has witnessed an upward trend in growth. Here is a financial analysis of the company’s growth in the past 5 years.
Bajaj Finserv Financial Analysis
Bajaj Finserv is a large-cap company with a market capitalization of Rs 243,862 crores as of May 20224. Headquartered in Pune, Bajaj Finserv has more than 1400 branches in India and a workforce of more than 20,000 people.
The EBITDA margin of Bajaj Finserv has gone up from 28.5 in 2018 to 36.84 in 2024. EBITDA stands for Earnings before Interest, Taxes, Depreciation, and Amortization. This is an important parameter to consider when learning about the company’s growth.
| Category (Yearly) | March 2024 (In Crores) | March 2019 (In Crores) |
| Net Revenue from Operations | 1,699.29 | 423.05 |
| Net Profit | 1170.06 | 307.17 |
| Basic Earnings Per Share | 7.30 | 19.30 |
Bajaj Finserv Share Price
The following Bajaj Finserv share price chart will explain the growth trajectory of growth over the last 5 years.
Bajaj Finserv share price has increased from Rs 1,330 to Rs 1,741 in the past 52 weeks. Moreover, it is a company’s share price that has doubled over the past 5 years. The price has gone up from around Rs 700 in June 2019 to Rs 1650.00 in May 2024.
Additionally, since its inception, Bajaj Finserv has gone up from Rs 67.68 in 2008 to Rs 1650+ in 2024. To put it in perspective, investors who purchased Bajaj Finserv shares worth Rs 10,000 in 2008 will earn Rs 11+ lakhs in 2024.
Is It a Smart Decision to Invest in Bajaj Finserv?
Out of 11 analysts who have studied the performance of Bajaj Finserv stocks, 3 strongly recommend investors to buy the stock, 5 suggest that investors must buy these stocks whereas 2 analysts have given it a sell rating.
With a promoter holding of 60.69% and a public holding of 39.13%, the company is in a strong position. The long-term returns for early investors underscore the company’s potential for sustained growth.
The growing operational efficiency is also a plus point which is reflected by the increased EBITDA from 28.5% in 2018 to 36.84% in 2024. With a strong market performance and favorable recommendations from stock market analysts, the company looks a promising investment option. However, investors must thoroughly check before investing.
Summary
Bajaj Finserv has experienced robust growth over the past five years. The company has shown a significant increase in revenue, profit, growth, and even the share price. Thus, the company’s strategic position and financial health make it an attractive option for investors.
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