Bajaj Finserv Ltd-Research Report

About the Company:

Bajaj Finserv Ltd. is the holding company for the various financial services businesses under the Bajaj group. It serves millions of customers by providing solutions for asset acquisition through financing, asset protection through general insurance, family and income protection in the form of life and health insurance, and retirement and savings solutions.

Bajaj Finserv was incorporated on April 30, 2007 as a result of its demerger from Bajaj Auto Limited as a separate entity to focus purely on the financial services business of the group. Pursuant to demerger of Bajaj Auto Ltd. in 2008, the undertaking comprising of windmills and investment in financial services were transferred to the Company. In addition to that, cash and cash equivalent of Rs 800 crore (then market value) was also transferred to the Company. The demerger enabled investors to hold separate focused stocks and facilitated transparent benchmarking of the companies to their peers in their respective industries.

Currently the co. offers both general & life insurance, and lending solutions to its customers through its subsidiaries namely Bajaj Allianz General Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Bajaj Finance Limited, Bajaj Housing Finance Limited and Bajaj Finserv Asset Management. Bajaj Finserv Limited (BFS) is the financial services arm under Bajaj Holdings and Investment Ltd (BHIL).

Company’s Bajaj Allianz Life Insurance Company Limited (BALIC) focuses on Life Insurance, Retirement & Pension Insurance, Bajaj Allianz General Insurance Company Limited (BAGIC) focuses on General and Health Insurance, Bajaj Finance Limited (BFL) focuses on Consumer & Finance Business, Bajaj Housing Finance Limited (BHFL) focuses on Mortgage and Developer Financing and Bajaj Finserv Asset Management (Bajaj AMC) which focuses on Mutual Funds. Company also operates various platforms such as Bajaj Finserv Direct Limited (BFDL) which operates as Digital Marketplace & Technology Services, Bajaj Finserv Health Limited (BFHL) a which operates as (Health-tech Platform and offers TPA services and Bajaj Financial Securities Limited (BFSL) which operates as Digital Stockbroker.

Company has wide spread reach across India through its various entities. BAJAJ FINANCE is present in 4,263 Locations and have 224,000+ Active Point of Sales, BAJAJ HOUSING FINANCE LIMITED is located in 174 Locations with 216 branches, BAJAJ ALLIANZ LIFE INSURANCE is located has 597 Branches with team of 161,000+ Individual Agents, 100+ Corp. Agents and Brokers and 3,500 PSF. BAJAJ ALLIANZ GENERAL INSURANCE has 221 Branches and has team of 200+ Corp. Agents and Banks, 85,600+ POS and 66,000+ Individual Agents, BAJAJ FINSERV HEALTH has tie ups with 100,000+ Doctors, 15,000+ Hospitals and 5,000+ Labs. BAJAJ FINSERV DIRECT has 45+ MM franchise, 96 partners in Bajaj Markets with Expansion in Middle east and US market on Tech services.

Business segments:

1. Bajaj Allianz General Insurance Company Limited - Diversified product portfolio offering across retail and corporate segments. Multi channel distribution network encompassing multiline agents, bancassurance, motor dealers’ broking, direct, and ecommerce network servingall segments. It is focused on penetrating small towns (Geo model) and retail segment. Company has Over 200+ corporate agents and banca partners and its major new tie ups includes HSBC, Shriram Finance Ltd, Namdev Finvest Pvt Ltd, Chhatrapati Rajashri Shahu Urban Co Bank Ltd, Kerala Finance Corporation, Muthoot Securities Ltd, Airtel Payment Bank Ltd, Cars24 Financial Services Pvt. Ltd. Company has also partnered with 25+ Insuretech companies, aggregators, wallets such as Phone Pe, payments banks, etc. Along with that it has also partnered with 45+ national and over 9,300 network of dealers across pan India which also includes Major National Tie-ups such as Maruti, Honda, Toyota, Mahindra, Hyundai, MG, Kia, VW, BMW, TATA Motors, Bajaj, RE, Yamaha, Piaggio, JCB, Suzuki TW, Hero, Bgauss, Revoult, Lexus, Nissan, Renault, Hero Electric, Ampere.

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2. Bajaj Allianz Life Insurance - It is the fastest growing private Life Insurance co. and in Top 10 Players in FY23 & 9M FY24. It has the highest solvency ratio in the industry and covered 2.76 crore group lives in FY23. The company has a Pan India distribution reach with a presence of 500+ branches. It has 1.43 Lakh+ agents.

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3. Bajaj Finserv Health Limited - Health Management platform to solve for Access and Financing of healthcare to Indian consumers. 100,000+ Doctors on platform, 5,500+ lab touch points and 2,100+ hospitals on network.
4. Bajaj MARKETS - BFSI marketplace is a unique & diversified Marketplace for Financial Services which attracts large number of consumers and cross-sells products by leveraging Technology & Analytics. Its an open Architecture platform offers Financial products’ variants across Loans, Cards, Insurance, Investments & Payments in partnership with leading industry players. It offers a wide choice from offerings of ~81 manufacturers and ~121 financial products.
5. Bajaj Finserv AMC - Bajaj Finserv Asset Management Limited filed for its first 7 products with SEBI in Mar-23 and Apr23.Total Assets Under Managements stood at $ 770 MM

 

 

Fundamentals:

CMP	Rs. 2037
52 - week high / low	Rs.  2,135 / 1,419
Dividend % (consolidated)	0.05%
ROE	13.4 %
BV(Rs.)	453
Sales (Rs.)	1,33,821 Cr.
Debt to Equity	4.92
P/E ratio	35.9
EPS (consolidated)	55.6
P/B ratio	4.39
Market Cap	3,18,541 Cr.
Face value (Rs.)	1
PEG Ratio	1.68
EVEBITDA	13.4

 

 

 

Financial Results:

Company’s Net Sales at Rs 36,595.36 crore in March 2025 up 14.21% from Rs. 32,040.84 crore in March 2024. Quarterly Net Profit at Rs. 2,416.64 crore in March 2025 up 14.07% from Rs. 2,118.53 crore in March 2024. EBITDA stands at Rs. 12,728.57 crore in March 2025 up 16.42% from Rs. 10,933.63 crore in March 2024. Bajaj Finserv EPS has increased to Rs. 15.10 in March 2025 from Rs. 13.30 in March 2024.

Bajaj Financia Limited’s Net total income for 04 FY25 increased by 23% to 11,917 crore v/s 29.714 crore in 04 FY24 Profit after tax for 04 FY25 Increased by 17% to 24,480 crore v/s 3.825 crore in 04 FY24. Loan losses and provisions for Q4 FY25 increased to 2.329 crore v/s 7 1.310 crore in 04 FY24. In 04 FY25 the Company made an additional provision of t 359 crore on account of the redevelopment of its Expected Credit Loss (ECL) model.

Profit after tax of its mortgage subsidiary, BHFL, was 587 crore in 04 FY25 v/s 381 crore in 04 FY24-an increase of 54% Assets Under Management (M) as on 31 March 2025 were 416,661 crore v/s 550.615 crore as on 31 March 2024-an increase of 26%. This includes AUM of f 114.684 crore of BHFL which recorded a growth of 26% over the AUM as on 31 March 2024, Gross Non-Performing Assets (NPA) and Net NPA as on 31 March 2025 stood at 0,96% and 0.44% respectively as against 0.85% and 0.37% as on 31 March 2024. Previsioning coverage ratio on stage 3 assets is 54% Capital adequacy ratio (CRAR) (including Tier-il capital) as on 31 March 2025 stood at 21.93% The Tier-I capital was at 21.09%. For BHFL, the capital adequacy ratio (including Tier-Il capital) was 28.24%.

Bajaj Allianz General Insurance ‘s GWP for FY2025 stands at USD 2,544 MM recording a growth of 7% YoY, GWP Ex crop & govt health stands at USD 1,932 MM recording a growth of 12% YoY and COR stands at 101.7% for FY2025.

Profit after tax for 04 FY25 stood at 363 crore v/s 380 crore in 04 FV24. Excluding profit on sale of investments, the Profit after tax grew at a healthy 20%. As on 31 March 2025, solvency ratio was 325%, which is well above the minimum regulatory requirement of 150%. Assets Under Management (AUM), represented by cash and investments as on 31 March 2025 stood at 33,115 crore v/s 31.196 crore as on 31 March 2024-an Increase of 6%.

Bajaj Allianz Life Insurance Company Limited (BALIC) - Life insurance industry growth slowed down in H2 FY25, subsequent to implementation of product regulations which came into effect from 1 October 2024.

New business premium for Q4 FY25 stood at ₹ 3,709 crore v/s t 3.953 crore in Q4 FY24.

a) Individual rated new business premium was 2,328 crore in Q4 FY25 v/s 2.330 crore in Q4 FY24.

 

b) Group protection new business was 648 crore in Q4 FY25 v/s 678 crore in Q4 FY24

 

c) Group fund new business was 677 crore in Q4 FY25 v/s B16 crore in Q4 FY24.

Renewal premium for Q4 FY25 stood at 5,448 crore v/s 14,230 crore in Q4 FY24-of 29% increase.

 

Consequens gross written premium for Q4 FY25 increased by 13% to 9,237 crore v/s 8.183 crore in Q4 FY24.

v) Shareholders' profit after tax during Q4 FY25 was 41 crore v/s 106 crore in Q4 FY24. Net Value of New Business (VNB), which is the key metric to measure profitability of life insurance business, was 549 crore in Q4 FY25 v/s 480 crore in Q4 FY24-an increase of 14%.

vi) Solvency ratio stood at a healthy 359% as on 31 March 2025 as against the minimum regulatory requirement of 150%.

vii) Assets Under Management (AUM), represented by total investments stood at ₹ 123,734 crore as on 31 March 2025 v/s 109,829 crore as on 31 March 2024-an increase of 13%.

Recent Highlights:

• On 28 April 2025, BFL announced sub-division of face value of shares from ₹2 to ₹1 paid-up equity shares, and issue of 4 paid-up bonus equity shares for every 1 paid-up equity share.
• Completed Successful IPO of BAJAJ HOUSING FINANCE at USD 754 MM.
• Strategic acquisition of Vidal Healthcare under BAJAJ FINSERV HEALTH.
• BAJAJ FINANCE became Largest NBFC in India by crossed 100 MM customer franchise Transition to FINAI underway.
• BAJAJ AMC became Fastest-growing mutual fund.
• BALIC crossed AUM of USD 14 BN and BAGIC reported Best Combined Ratio amongst peers consistently.
• SPA (along with other Bajaj Companies) and Allianz SE, to acquire 26% stake in insurance subsidiaries for USD 2.78 BN.

Conclusion:

In conclusion, Bajaj Finserv Ltd. demonstrates strong fundamentals supported by a diversified financial services portfolio, consistent earnings growth, and robust risk management practices. Its presence across insurance, lending, and wealth management provides stability and scalability, positioning it well to leverage India’s expanding middle class and increasing financial inclusion.

The company’s prudent capital allocation, digital transformation initiatives, and conservative underwriting further enhance its long-term growth potential. While short-term market volatility may impact sentiment, Bajaj Finserv’s resilient business model and solid financial metrics make it a compelling choice for investors seeking steady wealth creation. For long-term, risk-conscious investors, Bajaj Finserv stands out as a fundamentally sound investment aligned with India’s evolving financial ecosystem.

HET ZAVERI

info@smartinvestment.in

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