Bajaj Finance Limited (BAJFINANCE) AI Stock Analysis

• Market Cap: ₹5.79T
• Dividend Yield: 0.56%
• Average Volume (3M): 420.38K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 0.97
• Revenue Growth: 22.38%
• EPS Growth: 18.37%
• Country: IN
• Employees: 43,147
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 7.90
• Shares Outstanding: 6,222,484,400
• 10 Day Avg. Volume: 511,445
• 30 Day Avg. Volume: 420,375
• PEG Ratio: 2.39
• Price to Book (P/B): 5.57
• Price to Sales (P/S): 8.02
• P/FCF Ratio: -7.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,110.00
• Price Target Upside: 19.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹1,076.00 ▲(15.63% Upside)

Bajaj Finance Limited's overall stock score is primarily influenced by its strong financial performance, despite challenges in cash flow management. The technical analysis indicates bearish momentum, which is a concern for short-term investors. The valuation suggests the stock is relatively expensive, which could limit upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability and market position.

Profitability

Healthy profit margins reflect efficient operations and pricing power, contributing to sustainable earnings and competitive advantage.

Balance Sheet Health

A solid balance sheet with moderate leverage provides financial flexibility and resilience against economic fluctuations, supporting long-term growth.

Negative Factors

Negative Cash Flows

Negative cash flows can strain liquidity and limit the ability to reinvest in growth opportunities, potentially impacting long-term financial health.

Declining Margins

Declining margins may signal rising costs or competitive challenges, which could erode profitability if not addressed, affecting long-term sustainability.

Cash Flow Generation

Discrepancies between cash flow and earnings can indicate potential issues in cash conversion, affecting liquidity and operational efficiency over time.

Bajaj Finance Limited Business Overview & Revenue Model

Company Description

Bajaj Finance Limited operates as a non-banking financial company in India. The company offers consumer durable, lifestyle, lifecare, digital product, two and three wheeler, developer, used car, medical equipment, vendor, light engineering, specialty chemicals, financial institution, corporate, and warehouse finance services; IPO and ESOP finance, margin trading finance, trading account, depository, and HNI and retail broking services; personal, gold, home, business, working capital, secured enterprise, and professional loans; and loan against fixed deposits, shares, properties, and securities. It also provides life, general, and health insurance, as well as pocket insurance products; extended warranty, e-commerce, and lease rental discounting services; financial fitness reports; and EMI cards, and co-branded credit cards and wallets, as well as offers investment services, such as systematic deposit plan, fixed and term deposits, and mutual funds. The company was formerly known as Bajaj Auto Finance Limited and changed its name to Bajaj Finance Limited. The company was incorporated in 1987 and is based in Pune, India. Bajaj Finance Limited is a subsidiary of Bajaj Finserv Limited.

How the Company Makes Money

Bajaj Finance generates revenue primarily through interest income from its lending activities. The company offers a variety of loans, which are typically provided at competitive interest rates, allowing it to earn significant interest income over the duration of the loan. In addition to interest income, BAJFINANCE also earns fees and commissions from processing loan applications, insurance products, and other financial services. Another key revenue stream is the growth in its customer base and the cross-selling of additional financial products, which enhances customer lifetime value. The company has also established partnerships with various merchants and e-commerce platforms, allowing it to offer financing solutions at the point of sale, further driving loan origination and revenue. The effective use of technology and data analytics to assess credit risk and enhance customer experience plays a crucial role in optimizing its earnings.

Bajaj Finance Limited Financial Statement Overview

Summary

Bajaj Finance Limited demonstrates robust revenue and profit growth, showcasing its competitive strength in the credit services industry. The balance sheet reflects a sound financial position with a balanced approach to debt and equity. However, persistent negative cash flows highlight potential areas for improvement in cash management and operational efficiency.

Income Statement

Bajaj Finance Limited shows strong revenue growth with a consistent upward trajectory in total revenue over the past years. The Net Profit Margin and Gross Profit Margin are healthy, indicating robust profitability. However, the EBIT and EBITDA margins have slightly declined, suggesting increased operational costs or competitive pressures.

Balance Sheet

The company's balance sheet indicates a moderate level of leverage with a manageable debt-to-equity ratio. The return on equity is strong, reflecting efficient use of equity to generate profits. However, the equity ratio is moderate, which suggests a balanced approach to financing through debt and equity.

Cash Flow

Cash flow analysis reveals challenges, as the company consistently shows negative free cash flow and operating cash flow. This could indicate high reinvestment needs or inefficiencies in cash management. The operating cash flow to net income ratio suggests that cash flow generation is not keeping pace with reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	703.39B	671.27B	530.51B	395.27B	298.86B	254.37B
Gross Profit	443.35B	423.56B	343.26B	269.67B	201.32B	160.23B
EBITDA	241.15B	229.61B	199.93B	160.13B	98.88B	63.18B
Net Income	174.25B	166.38B	144.51B	115.08B	70.28B	44.20B
Balance Sheet
Total Assets	0.00	4.66T	3.76T	2.75T	2.13T	1.72T
Cash, Cash Equivalents and Short-Term Investments	0.00	135.44B	106.24B	43.05B	33.81B	22.58B
Total Debt	0.00	2.90T	2.34T	1.73T	1.33T	1.06T
Total Liabilities	-989.37B	3.67T	2.99T	2.21T	1.69T	1.35T
Stockholders Equity	989.37B	966.93B	766.95B	543.72B	437.13B	369.18B
Cash Flow
Free Cash Flow	0.00	-692.36B	189.54B	-430.19B	-376.63B	-9.46B
Operating Cash Flow	0.00	-681.54B	199.92B	-421.40B	-370.29B	-8.07B
Investing Cash Flow	0.00	-27.65B	-982.82B	-103.65B	63.47B	-4.29B
Financing Cash Flow	0.00	705.27B	824.15B	506.75B	322.40B	17.41B

Bajaj Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 930.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BAJFINANCE, the sentiment is Negative. The current price of 930.55 is below the 20-day moving average (MA) of 947.81, below the 50-day MA of 984.64, and below the 200-day MA of 957.93, indicating a bearish trend. The MACD of -16.89 indicates Negative momentum. The RSI at 39.17 is Neutral, neither overbought nor oversold. The STOCH value of 37.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BAJFINANCE.

Bajaj Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUTHOOTFIN	74 Outperform	₹1.54T	22.50	―	0.68%	41.32%	56.12%
CHOLAFIN	73 Outperform	₹1.38T	28.65	―	0.12%	27.30%	20.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.92T	21.03	―	1.08%	21.24%	22.61%
BAJFINANCE	64 Neutral	₹5.79T	31.69	―	0.56%	22.38%	18.37%
LTF	62 Neutral	₹716.10B	25.71	―	0.91%	15.90%	4.53%
M&MFIN	52 Neutral	₹521.86B	21.22	―	2.83%	―	―

Bajaj Finance Limited Corporate Events

Bajaj Finance Files SEBI Demat Compliance Certificate for December Quarter

Bajaj Finance Limited has disclosed that its registrar and share transfer agent, KFin Technologies Limited, has issued a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The certificate confirms that no securities were received for dematerialisation during the quarter, and consequently no physical share certificates were mutilated, cancelled, or substituted with the depositories’ name in the register of members, underscoring routine regulatory compliance and indicating stable capital structure activity for the period in question.

Bajaj Finance Receives Independent ESG Rating of 70

Bajaj Finance Limited has disclosed that ESG Risk Assessments and Insights Limited has assigned the company an ESG rating of 70 as part of its annual environmental, social and governance assessment, based on information available in the public domain. The rating was issued independently without Bajaj Finance’s engagement, signaling growing external scrutiny and transparency around the company’s sustainability performance, which may influence investor perception and align with increasing regulatory and market focus on ESG metrics in India’s financial sector.

Bajaj Finance Releases Investor Meet Audio Recording

Bajaj Finance Limited announced that the audio recording of its recent Investor/Analyst Group meet, held on December 5, 2025, in Mumbai, is now available on the company’s website. This move demonstrates the company’s commitment to transparency and effective communication with its stakeholders, providing them with insights into its strategic discussions and financial outlook.

Bajaj Finance Announces Investor Presentation Submission

Bajaj Finance Limited has announced the submission of an investor and analyst group meet presentation in accordance with SEBI regulations. This presentation, which will be available on the company’s website, is part of their ongoing efforts to maintain transparency and engage with stakeholders, potentially impacting investor confidence and market perception.

Leadership Transition at Bajaj Finance: Anupam Sirbhaiya Moves to Bajaj Finserv

Bajaj Finance Limited announced the resignation of Shri Anupam Sirbhaiya from his position as Chief Human Resources and Administration Officer, effective November 1, 2025. Sirbhaiya will transition to Bajaj Finserv Limited as the Group Chief Human Resources Officer. This leadership change is significant for Bajaj Finance as it may impact its human resources strategy and operations, while also reflecting the internal mobility within the Bajaj Group.

Bajaj Finance Announces Leadership Change in HR

Bajaj Finance Limited announced the resignation of Anupam Sirbhaiya as President & Chief Human Resources and Administration Officer, effective November 1, 2025. Sirbhaiya has transitioned to a new role within the Bajaj Group as Group Chief – Human Resources Officer at Bajaj Finserv Limited. This change is part of the company’s succession framework and reflects an intra-group movement, potentially impacting the company’s human resources strategy and leadership dynamics.