Bajaj Finserv

Many have this confusion, what actually Bajaj Finserv does?? Its unlike Bajaj Finance which does Auto Finance, Home loans, Commercial Loans, Gold loans etc.,

Structure: One has to understand that Bajaj Finserv is a holding company which holds many subsidiaries under it just like HDFC Ltd. Bajaj Finserv holds 52.8% stake in Bajaj Finance, Results of Bajaj Finserv is reflection of Bajaj Finance which is performing well, Other subsidiary is Bajaj Allianz Life Insurance company ltd where Bajaj Finserv holds 74% stake, And Bajaj Allianz general insurance company which holds 74% stake

Results:  Bajaj Finance registers a profit of 962 Cr in Q1-2021 against 1195 crores in Q1-2020 which is a 19% fall

Bajaj Allianz general insurance registers a profit of 395 Cr in Q1-2021 against 210 Cr in Q1-2020 which is 88% gain

Bajaj Allianz Life Insurance registers a profit of 130 Cr in Q1-2021 against 62 Cr in  Q1-2020 with a gain of 110%

Now if we add total profit of Bajaj Finserv with the proportion they hold stakes in all above companies it stands at 1215 Cr in Q1-2021 against 845 Cr in Q1-2020 which is a gain of 44%

Now what Investor has to understand, He/she primarily has needs to know whether Bajaj Finance or Bajaj Finserv where one needs to invest Lets compare some aspects

Last 5 years Bajaj Finance Bajaj Finserv
Net Profit CAGR 42% 14.80%
Absolute Returns 528% 271%
Sales growth 37% 36.80%
Historical PE 29.6 21.7
Current PE 39.44 27.17

So Finally our input: If you are conservative investor pick Bajaj Finserv has its portfolio is diversified and if aggressive pick Bajaj Finance, It’s just a view not a suggestion to just go & buy one

Signing off

Having worked several years into Life Insurance, Health Insurance, Mutual Funds & Closely with people into financial planning i am now putting my first step in investment advisory

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