Bajaj Holdings (BAJAJHLDNG)

FairStock Score: 72/100 — STEADY

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

Key Financials

Strengths

• Zero debt (D/E 0.00) and high promoter holding of 51.46% provide a strong financial base and aligned ownership.
• ROE of 14.02% combined with a Piotroski F-Score of 7/9 indicates sound profitability and balance-sheet health.
• Net profit grew 15.82% while the stock trades at a P/E of 16.35 and PEG of 1.21, a reasonable growth-to-valuation combination if sustained.
• Free cash flow of ₹1,097 Cr and latest-quarter net profit of ₹2,018 Cr show earnings resilience despite low operating sales of ₹288 Cr.
• FairStock Score of 72/100 (STEADY) reflects consistent overall performance.

Concerns

• Sales growth is -34.08%, and latest-quarter sales are only ₹288 Cr, indicating a shrinking top-line/revenue base.
• The stock at ₹10,373.10 is above the Graham Number of ₹10,002.99, leaving no margin of safety (-8.01%).
• DCF intrinsic value of ₹2,674.11 is far below the market price, and EV/EBITDA of 111.20 suggests the earnings-based valuation is stretched.
• Altman Z-Score of 1.83 is weak, though a holding company structure may make this metric less meaningful.

AI Analysis

Bajaj Holdings is a holding company, so I evaluate it differently. The latest quarter says it all: sales of ₹288 crore but net profit of ₹2,018 crore. The real earnings engine is not operating revenue; it is the investment portfolio and associates. The moat, if any, lies in the quality and durability of those underlying franchises, not in a traditional product or pricing advantage. That can create stability, but it makes DCF unreliable. The numbers show a conservative balance sheet: debt/equity is 0.00, promoter holding is 51.46%, and the Piotroski score is 7/9. ROE of 14.02% is decent, while book value of ₹5,632.81 means the current price of ₹10,373.10 trades at 1.84 times book. Profit growth of 15.82% coupled with a P/E of 16.35 gives a PEG of 1.21; that is acceptable if the growth is sustainable. But sales growth is -34.08%, and the dividend yield is just 0.86%. As a value investor, I need a margin of safety. The Graham Number is ₹10,002.99, so at today's price the margin of safety is -8.01%. The DCF value of ₹2,674 is far lower, but I would not weight it heavily for a holding company. Still, EV/EBITDA of 111.20 warns that the earnings multiple is not a source of comfort. This is a steady, well-financed holding company, but the current price offers no statistical bargain. I want to see the sales trend stabilise, the book value continue to grow, and the dividends support total returns. Until then, I would stay disciplined and wait for a margin of safety.

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