Bajaj Finance Ltd. – Multibagger Analysis
Bajaj Finance Ltd. is a great stock which delivered more than 40 times returns in last 13 years. We can check whether it has Ampere ahead based on our Intrinsic Valuations.
Brief: Bajaj Finance Limited is a financial services company that operates branches in India, which provide an assortment of financial services.
|History of Consistently Increasing Sales, Earnings & Cash Flow|
|Durable Competitive Advantage|
|Future Growth Drivers|
|Conservative Debt (long term debt < 3*Net Profit)|
|Return on Equity must be Above Average|
|Low CAPEX required to maintain current operations|
|Management is holding / buying the stock|
|Price is Under Valued (< intrinsic value)|
|Stock Price is consolidating|
Current Market Price
1378 (CMP < Intrinsic Value, Very Good)
EPS Growth Rate
40% (Very High, Very Good)
24% (Above Average, Good)
1694 Crore (Raises a concern as it is little above 3 times latest net profit)
Stock Price Consolidation
The stock price is in the up-move as it is a Declared Blue Chip Multibagger. But, considering PE around 12, Book Value Ration just 0.5, I see it as a Good Price to buy & add on declines.
Taking average EPS Growth as 30% per year, PE Ratio @ 20, we can expect 20 Times returns in 10 years.