Bajaj Finserv is a financial services company, a part of Bajaj Holdings & investment, providing services in asset management, insurance wealth management, etc.
The market capitalisation of Bajaj Finserv as of the beginning of March 2018 is over Rs.77,000 crore.
Company’s wealth and recent performance
Q1 Results for FY19
From the statement of the standalone unaudited financial results for the first quarter of the financial year 2018–2019, we can see the following:
- The total income of the company decreased from Rs.32.83 crore in the previous quarter to Rs.30.40 crore in the current quarter.
- The total income is split into revenue from operations and other income. Out of these, the revenue from operations decreased from Rs.29.74 crore in the previous quarter to Rs.27.40 crore in the current quarter. The other income derived by the company decreased by a very marginal amount to Rs.3 crore in the current quarter, down from Rs.3.09 crore in the preceding quarter.
- The total expenses of the company increased from Rs.18.89 crore in the preceding quarter to Rs.22.40 crore in the current quarter.
- The company’s profit before tax was Rs.13.94 crore in the previous quarter and it decreased to Rs.8 crore in the current quarter. The profit after tax also took a big hit. The profit after tax in the preceding quarter was Rs.10.51 crore which then dipped drastically to Rs.3.97 crore in the current quarter.
- The total comprehensive income dropped from Rs.10.45 crore in the preceding quarter to Rs.3.90 crore in the current quarter.
Annual report for the financial year 2017–2018
From the standalone audited financial results for Bajaj Finserv with regard to the FY18, we can see the following:
- The total revenue of the company rose from Rs.165 crore in the FY17 to Rs.252.24 crore in the current year. This is an increase of close to Rs.90 crore in a single year.
- The total revenue of the company is split into revenue from operations and other income. Revenue from operations increased from Rs.153.90 crore in the FY17 to Rs.239.76 crore in the current year. The other income of the company did not show that much of an increase with only a Rs.1.38 crore difference between FY17 and FY18.
- The total expenses of the company rose from Rs.61 crore in FY17 to Rs.85.45 crore in FY18.
- The profit before tax of the company rose from Rs.104 crore in FY17 to Rs.166.79 crore in FY18.
- Profit after tax rose from Rs.70.02 crore in FY17 to Rs.141.34 crore in FY18. Considering this, we can see that the company’s profit after tax actually doubled within a single year.
- The total assets of the company rose from Rs.2,814.13 crore in the FY17 to Rs.2,934.05 crore in the FY18. This was a solid increase of Rs.119.92 crore in a single year.
The statement of the consolidated audited financial results for the financial year spanning 2017–2018 indicates the following:
- The total revenue of the company rose from Rs.24,507.72 crore in FY17 to Rs.30,599.41 crore in the FY18.
- The total expenses of the company rose from Rs.19,583.19 crore in the FY17 to Rs.24,289.24 crore in the FY18.
- The profit before tax showed an increase of Rs.1,385.64 at the end of FY18 compared to the profit before tax recorded at the end of FY17.
- Net profit after minority interest rose from Rs.2,261.92 crore in FY17 to Rs.2,741.44 crore in FY18.
Q4 Results for FY18
From the standalone audited financial results for the final quarter of the financial year 2017–2018, we can see the following:
- The revenue from operations decreased to Rs.23.88 crore from Rs.31.88 crore in the previous quarter.
- The other income derived by the company decreased to Rs.2.99 crore, down from Rs.3.08 crore in the previous quarter.
- Thus, total revenue dropped to Rs.26.87 crore from Rs.34.96 crore in the previous quarter.
- In other news, the total expenses of the company reduced from Rs.18.29 crore in the previous quarter to Rs.15.13 crore in the current quarter.
- The company managed to achieve a significant decrease in other expenses with a Rs.2.79 crore decrease from the previous quarter.
- The profit before tax dropped from Rs.16.67 crore in the previous quarter to Rs.11.74 crore in the current quarter.
Q3 Results for FY18 and past financial results
- The profits after tax of the company for Q3 of FY18 were Rs.767 crore
- The company grew by 38% when compared to the last quarter of the previous year
- The total AUM (Assets Under Management) was reported at over Rs.76,000 crore
- The loan books rose to 58% to Rs.4,535,818 in Q3 of FY18 from Rs.2,879,595 which was reported in Q3 of FY17
- The total income of Bajaj Finserv rose in Q3 FY18 to 31%. The total income amounted to Rs.3,545 crore as opposed to Rs.2,700 crore reported in Q3 of FY17
Bajaj Finserv stock history in 2018
- The opening share price of the company in January 2018 was about Rs.5,171. The stock rose to about Rs.5,199 by mid-second week. Then the share price dropped to below Rs.5,000. The final price for the month of January 2018 was about Rs.4,875.
- The stock price rose slowly in February 2018 to breach the Rs.5,000 mark. The share price stayed over Rs.5,000 for most of the month. The final price for February 2018 was about Rs.5,051.
- The price of the share dipped briefly in March 2018 to below Rs.5,000 and then recovered. From the second week of the month, the share price remained firmly over Rs.5,000. The stock climbed in price over the course of the third and the fourth weeks of the month to close at about Rs.5,171 at the end of the month.
- In April 2018, the stock achieved a high of about Rs.5,561 but the high was not sustained. The price of the stock dipped after the high and the stock did not regain that price for the rest of the month. The closing price at the end of the month was about Rs.5,482.
- The stock dipped in price over the course of the first two weeks of May 2018. After that, the stock climbed in price in a decisive manner with the stock breaching the Rs.6,000 mark during the course of that month. The closing price for the month was about Rs.6,042.
- In June 2018, the share price fluctuated between Rs.5,700 and Rs.6,200. The final price for June 2018 was about Rs.5,821.
- The stock rose in price throughout the month of July 2018. A final 35% dividend was announced in July 2018. The stock breached the Rs.7,000 mark during the closing week of this month. But the stock dipped a little to close for the month at about Rs.6,977.
- The stock remained over Rs.7,000 for most of August 2018 but dipped during the closing days of the month to finish at about Rs.6,747 on the last day of the month.
- The stock price of Bajaj Finserv stood at around Rs.1,990 at the start of 2016
- The demise of their director on the 12th of January, 2016 may have caused the stock prices to plummet up until the end of February
- The stock price at the end of February stood close to Rs.1600
- The price of the stock then was visibly stagnant up until the mid of June, after which the company saw a steady incline of stock prices
- Q1 results were out at the end of July which may also have been one of the reasons of the stock prices to rise in the coming months
- The company still enjoyed the steady rise of the stock prices
- The Q2 results were published at the end of October, and the stock prices of the company peaked during the beginning of November, 2016 close to Rs.3,440
- The stock prices then surprisingly dropped post this, hitting a price of close to Rs.2555 at the end of the year, eventually ending the year of 2016 at Rs.2800 approximately
- The Q3 results of the company was released at the beginning of January 2017, which may have caused the stock prices to rise in the coming months
- At the end of March, the stock prices of 64 BSE500 companies, including Bajaj Finserv, hit all-time highs
- The stock prices then stood at Rs.4,100 approximately, and further rose to Rs.4,600 during mid-April
- During the month of May, the company looked to raise Rs.1,000 crore from IFC (International Finance Corporation), after previously raising Rs.545 crore in NCDs the previous month
- The may have caused the stock prices to decline. At the end of May the stock prices of Bajaj Finserv stood close to Rs.4200
- The stock prices then remained visibly stagnant until mid-July when Bajaj Finserv changed their board of directors
- This perceivably caused the stock prices to spike drastically, increasing the stock price to around Rs.5,300 during mid-August
- The highest point of the company was during September when stock prices hit Rs.5600 approximately
- The company had its ups and downs during the next few months, but at the end of 2017, the stock prices stood mightily at around Rs.5,200
- The stock prices of the company started off 2018 at around Rs.5200
- As of early March, the stock prices of Bajaj Finserv stood at roughly Rs.4800
Why should you invest in Bajaj Finserv?
- The performance of the company in FY17 - 18 has shown incredible growth
- The company has been extremely profitable this year as well, growing at dramatic rates
- The company is one of the fastest growing financial services company in the market
- It’s immense progress in Q3, if replicated in Q4, would amount to a growth of 29% when compared to the previous year
Bajaj Finserv is a subsidy of Bajaj Holdings & Investments Limited and is a company that provides financial services that focuses on asset management, insurance, wealth management, etc. Apart from this, the finance giant is actively participating in wind energy generation. Located in over 1400 locations and having over 20,000 employees, the company, in 2014, was ranked 119 in the Economic times 500 companies list.
Arguably, the most famous product that Bajaj Finserv offers is their loans. They provide a wide range of loans that can benefit several types of individuals by catering to their specific needs. From home loans to doctor loans, almost all the loans available in the market can be availed from Bajaj Finserv.
Apart from the loans they provide, their insurance packages are also one of their renowned products they offer. Clubbed with their impeccable customer service, Bajaj Finserv is the go to company for several individuals looking for quality financial services.
Sanjiv Bajaj – Managing Director
After graduating from the University of Pune in Mechanical Engineering, Sanjiv Bajaj went on to do his masters from University of Warwick, located in the United Kingdom. He received his masters in Manufacturing Systems Engineering. Subsequently, he went on to do his masters in business administration from Harvard. Furthermore, he has created and conceptualised content for award-winning TV programs for CNBC-TV18.
S Sreenivasan – Chief Financial Officer (CFO)
Sreenivasan has been working with Bajaj Finserv since 2011, had been assigned CFO in October 2014. He also overlooks the insurance business of the company. His respected resume is backed by his exemplary educational qualifications. Holding a bachelor’s degree from the University of Kerala, Sreenivasan is also a certified Chartered Accountant, a Chartered Financial Analyst (CFA), and a cost accountant. He is also an alumni of the renowned, Indian Institute of management, Calcutta (IIM – C), where he received his Masters in Business Administration.
Formed in 2007, Bajaj Finserv was demerged from Bajaj Auto Limited. This was done for the company to focus solely on financial services. The demerging process was completed in 2008. Apart from only provide financial services, the company also looked to dive into wind power, and now is actively participating in the same.
In addition to transferring the finance sectors to Bajaj Finserv, Rs.8,000 million, which was the market value of the company back then, was also transferred to the company.
Bajaj Finserv Stock and Indices
Bajaj Finserv stocks are listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as well and can be traded on these platforms. The company is a part of Nifty 100, Nifty Next 50, Nifty 500, S&P BSE 100, S&P BSE 500, etc.
BSE code - 532978
NSE code - BAJAJFINSV
ISIN - INE918I01018
Sector - FINANCE - INVESTMENTS
4th Floor, Bajaj Finserv Corporate Office,
Off Pune-Ahmednagar Road, Viman Nagar,
Pune – 411014.
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.