Bajaj Finserv (BAJAJFINSV)

FairStock Score: 51/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I want a durable business at a fair price. Bajaj Finserv is a ₹3.21 lakh Cr holding company with 58.81% promoter holding and an ROE of 25.10%, which tells me its underlying financial-services engines earn well on equity. The latest quarter’s ₹39,708 Cr sales and ₹4,368 Cr net profit, plus a 19.75% five-year revenue CAGR and reported sales/profit growth above 238%, mark it as a fast grower. A Piotroski F-Score of 7/9 and current ratio of 2.73 add some comfort. But I must separate reported growth from owner earnings. Free cash flow is negative ₹70,100 Cr, debt/equity is 2.56, ROCE is only 11.03%, and the Altman Z-Score of 1.58 is weak. Valuation is the bigger hurdle. At ₹2008.30, P/E is 31.75, P/B is 4.12, PEG is 4.85, and EV/EBITDA is 719.43. Graham Number is ₹807.16, so the margin of safety is -146.96%—I am paying far above defensive value. Dividend yield is just 0.06%, and FairStock Score of 51/100 is mixed. The 52-week range of ₹1597 to ₹2195 suggests Mr Market has already recognised much of this story. This may be a quality-adjacent fast grower, but the price already discounts much success. I would wait for cash flow to turn positive, debt to moderate, and ROCE to improve before considering it a value purchase. I prefer a margin of safety, not a negative one. That is not Graham’s way.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer