Bajaj Finserv Receives 'Buy' Rating from MarketsMOJO, Shows Strong Long-Term Growth

Bajaj Finserv, a leading finance and NBFC company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 12.39%.
The company has shown healthy long-term growth, with an annual growth rate of 20.80% in net sales and 22.24% in operating profit. In addition, Bajaj Finserv has declared positive results for the last 10 consecutive quarters, with its PBDIT(Q) and PBT LESS OI(Q) reaching their highest levels at Rs 11,824.81 cr and Rs 5,968.20 cr respectively. The company also has a strong cash position, with CASH AND CASH EQUIVALENTS(HY) reaching its highest level at Rs 12,386.66 cr.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on 04-Sep-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

The majority shareholders of Bajaj Finserv are its promoters, which adds to the company's stability and growth potential. However, there are some risks associated with investing in the stock. With an ROE of 13.5, the stock is currently trading at an expensive valuation with a 5 Price to Book Value. It is also trading at a premium compared to its average historical valuations. Additionally, while the stock has generated a return of 23.97% in the last year, its profits have only risen by 18.3%, resulting in a PEG ratio of 2.

Despite these risks, Bajaj Finserv has underperformed the market in the last year, with a return of 23.97% compared to the market's (BSE 500) return of 37.63%. However, with its strong fundamentals and positive outlook, the stock is still considered a good buy by MarketsMOJO. Investors looking for a stable and growing company in the finance/NBFC industry may want to consider adding Bajaj Finserv to their portfolio.