22 July 2015
1QFY16 Results Update | Sector:
Financials
Bajaj Finance
BSE SENSEX
28,505
Bloomberg
Equity Shares (m)
M.Cap. (INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val (INRm)/Vol ‘000
Free float (%)
S&P CNX
8,634
BAF IN
53.3
273.5/4.3
5,652/2,151
-5/31/119
163/42
42.4
CMP: INR5,133
TP: INR5,479 (+7%)
Buy
Financials & Valuation (INR Billion)
Y/E March
NII
PPP
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh (INR)
RoA on AUM
(%)
RoE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
Div. Yield (%)
28.6
5.3
0.4
24.0
3.8
0.6
19.2
3.3
0.7
2015 2016E 2017E
28.7 37.2 47.1
17.4
9.0
24.2
3.1
20.4
10.1
23.4
11.4
19.0
3.0
19.1
14.0
29.8
14.2
24.8
2.9
18.3
14.0
179.6 213.8 266.8
960 1,342 1,566
5% PAT beat; healthy business momentum continues; asset quality remains stable
n
Bajaj Finance (BAF) 1QFY16 PAT stood at INR2.76b, up 30% YoY and 19% QoQ
(5% est. beat). Healthy AUM growth (32% YoY; 10% QoQ), stable asset quality
trends and strong performance of the consumer business were the key highlights
of the quarter.
n
AUM growth remained robust (up 32% YoY, 10% QoQ) at INR355.6b, driven by a
healthy 39% YoY growth in consumer finance and 26% YoY growth in the SME
business; the commercial segment continue to de-grow.
n
BAF started reporting asset quality on 150dpd basis, in line with RBI
requirements, from this quarter. Thus, GNPA/NNPA increased to 1.69%/0.55%.
On a 180dpd basis, GNPA/NNPA remained stable at 1.54%/0.48%. PCR declined
marginally QoQ to 68%. GNPA/NNPA on 90dpd stood at 2%/0.70%.
n
Other highlights:
1) BAF now ranks among the largest new client acquirers in
India, with 1.7m customer acquisitions in 1Q (1.2m in 1QFY15); 2) forayed into e-
commerce seller finance space via tie-up with Flipkart; 3) disbursed INR3b in
rural lending during the quarter and entered Karnataka; 4) conscious decision to
slow down the LAP business (LAP grew 13% v/s AUM growth of 32%) to realign
the business model in the wake of intense competition.
n
Valuation and view:
BAF continues to reap the benefits of healthy consumer
demand and is among the few companies doing well in this space. It continues
to increase its market share in consumer business—though a higher share of
incremental growth could be driven by the low-yield mortgage business, which
could pressurize margins. However, strong AUM growth and lower credit cost
will mitigate the impact. Maintain
Buy
with a TP of INR5,479—3.5x FY17E BV.
Sunesh Khanna
(Sunesh.Khanna@MotilalOswal.com); +91 22 3982 5521
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Bajaj Finance
Exhibit 1: Quarterly
Performance v/s Estimates (INR m)
Y/E March
Income from operations
Other Operating Income
Operating Income
YoY Growth (%)
Interest expenses
Net Income
YoY Growth (%)
Other income
Total Income
Operating Expenses
Operating Profit
YoY Growth (%)
Provisions and Cont.
Profit before Tax
Tax Provisions
Net Profit
YoY Growth (%)
Loan Growth (%)
Borrowings Growth (%)
Cost to Income Ratio (%)
Tax Rate (%)
E: MOSL Estimates
1QFY16E
15,156
816
15,971
28.4
6,546
9,425
26.7
200
9,625
4,108
5,517
36.7
1,500
4,017
1,386
2,631
24.5
29.8
29.8
43.6
34.5
1QFY16A
15,716
746
16,462
32.4
6,771
9,692
30.3
96
9,788
4,531
5,257
30.3
1,033
4,224
1,468
2,756
30.4
33.0
33.0
46.7
34.8
Var (%)
4
-9
3
3
3
Comments
Calc. margins on AUM stands at 10.3%
In-Line with estimates
10
-5
-31
5
6
5
Cost Income at 46%
Asset quality remains stable on 180dpd
Tax rate at 33%
Lower provisions led to 5% PAT beat
Healthy demand in consumer & SME segment drives 32% YoY AUM growth
n
n
n
Widening products category, new distribution channels and focus on cross
selling to existing customer are boosting incremental growth.
AUM growth remained strong (up 32% YoY & +10% QoQ) at INR355.6b, driven
by a strong +39% YoY growth in consumer segment (Consumer electronics &
personal loans) and 26% YoY growth in SME business (Mortgage, LAP & BL).
Commercial segment which consists of construction equipment and short term
infrastructure loans continue to register de-growth.
The management continues to target AUM growth of 25-30% for next 3 years.
Asset quality stable at 180dpd; Migrated to 150dpd; PCR at 68%
n
n
n
n
In line with RBI requirements, the company has moved its NPA recognition
policy to 150dpd from 180dpd. Due to this change, the reported asset quality
showed a decline on sequential basis. GNPA/NNPA on 150-dpd are at
1.69%/0.55%.
However on a 180-dpd asset quality remained stable at GNPA/NNPA
1.54%/0.48%.
Provisioning expenses for the quarter were lower on a sequential basis at
INR1.0b v/s INR1.14b. PCR declined sequentially at 68% v/s 71% in 4QFY15.
Internally the company already follows 90dpd and thus no impact has been
seen on P&L by changing the reporting norms.
Other highlights
n
Consumer business continues to have a good run; BAF now ranks among the
largest new client acquirers in India, with 1.7m customers acquisition in 1Q
(1.2m in 1QFY15)
2
22 July 2015

Bajaj Finance
n
n
n
Forayed into e-commerce seller finance space via tie-up with Flipkart in June.
The company has already disbursed ~INR40m under this segment. Also, tied-up
with Snapdeal at the start of second quarter.
Rural lending business on a strong footing. Incremental disbursements INR3b
during the quarter. Ventured into Karnataka during 1Q, would enter Madhya
Pradesh in 2Q and then enter Tamil Nadu.
Mortgage business remains hyper competitive. LAP business now merged with
business loan segment to derive synergies. Expects to expand LAP business from
3QFY16. Company aims to have 70% LAP disbursals via direct channels and focus
on existing customers. Current LAP book at INR85b with over INR70b in
residential and commercial book; and ~INR10b in LRD
Conference call highlights
n
n
n
n
n
n
n
Targets to grow loan book by 25-30% YoY and report 20%-25% YoY PAT growth.
FY16 growth guidance only after 2Q as it the weakest quarter for the company.
Recent capital raising adequate to take AUM to INR750-800b. No capital raising
expected for 3-4 years.
Borrowings:
Strategy is to create a balanced mix of wholesale and retail
borrowings. Current mix of bank, money markets and retail deposits is at
42:54:04. CoF reduced 25bps over the past 6 months on back of borrowing more
through money markets.
Customers sourced via online channel are 70% first time customers for BAF.
Current disbursals at ~INR1.6b-1.8b per quarter. Targets ~INR2.5b-3b per
quarter by FY16.
Company has a cautious view on LAP business resulting in slow growth in LAP
segment (LAP grew 13% v/s AUM 32%). Further, avg. tkt size in LAP reduced
from INR21m to INR17.5m. Expects the same to normalize at INR13-15m.
To grow its LAS segment, BAF will partner with leading banks and brokerages to
lend to their HNI/UHNI customers.
Insurance distribution business: LI: Sells only term insurance from HDFC and
Bajaj Allianz. GI: Selling health, property and extended warranties products from
Max Bupa and Bajaj Allianz. Earns commissions of 2% (LI) and 15% (GI) on gross
premium collected.
Valuation and view
n
n
BAF continues to reap the benefits of the consumer finance boom and is among
the few companies doing well in this space. BAF is the largest consumer
durables financier in the country, and is amongst the largest two-wheeler and
personal loans lender. One of the key strengths that Bajaj has built over time is a
quick turnaround time unmatched by most other retail financiers. Thus, other
than purchases on credit cards of banks, there are very few other competitors
that Bajaj sees in the consumer durables business, which enables it with pricing
power. Despite lower growth and pressure on asset quality witnessed across
sector; BAF continues to clock healthy growth and has one of the best asset
quality among the peer group.
We believe BAF continues to increase its market share in consumer business, as
it has almost monopoly in some of the business like lifestyle financing; however
higher share of incremental growth will be driven by low yielding mortgage
3
22 July 2015

Bajaj Finance
business which will exert some pressure on yields, however superior blended
margins, focused fee income strategy and low credit cost will keep core
operating profitability strong. We expect RoA/RoE of 2.9%/18% during FY16-17.
We raise FY16E/17E PAT by 1/3% on back of strong growth momentum.
Maintain
Buy
rating with a target price of INR5,479 (3.5x FY17E BV of INR1,566).
Exhibit 2: Upgrade estimate to factor in higher growth and stable margins
INR B
NII
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Loans
Borrowings
Credit Cost
RoA (%)
RoE (%)
Old Est.
FY16
FY17
40
1
40
17
23
6
17
6
11
405
352
1.4
3.0
21.3
49
1
50
21
29
8
21
7
14
518
456
1.6
2.9
21.9
New Est.
FY16
FY17
40
1
41
18
23
6
17
6
11
404
344
1.3
3.0
19.1
50
1
51
21
30
8
22
7
14
517
450
1.6
2.9
18.3
% Chg
FY16
FY17
2
0
2
2
0
2
2
2
1
2
2
2
1
3
1
3
1
3
0
0
-2
-1
-8
0
0
0
-11
-16
Source: MOSL
Exhibit 3: One year
forward
P/E (x)
Exhibit 4: One
year
forward P/B (x)
22 July 2015
4

Bajaj Finance
Exhibit 5: Quarterly Snapshot
FY14
1Q
Profit and Loss (INR m)
Total Income
Income from operations
Other Operating Income
Interest Expenses
Net Income
Other Income
Operating Expenses
Employee
Others
Operating Profits
Provisions
PBT
Taxes
Reported PAT
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPAs(%)
NNPAs(%)
PCR (%)
Ratios (%)
Cost to Income
Tax Rate
CAR
Tier I
RoA (not annualised)
RoE (not annualised)
Key Details (INR m)
AUM
On book Loans
Off book Loans
Disbursement
AUM Mix (%)
Consumer Finance
SME Business
Commercial
Rural
9,283
8,837
446
3,314
5,969
41
2,703
779
1,923
3,307
639
2,669
911
1,757
2Q
9,617
8,742
875
3,821
5,796
23
2,769
808
1,960
3,050
523
2,527
857
1,670
3Q
10,703
10,274
429
4,097
6,607
116
2,979
892
2,088
3,743
795
2,948
1,007
1,941
4Q
10,711
10,032
679
4,501
6,211
239
3,061
929
2,132
3,389
622
2,768
947
1,821
1Q
12,436
11,801
635
4,996
7,440
24
3,428
1,078
2,350
4,035
829
3,206
1,092
2,114
2Q
12,322
11,703
620
5,445
6,878
96
3,186
1,059
2,127
3,788
800
2,987
1,016
1,972
FY15
3Q
14,766
14,164
601
5,924
8,842
88
3,921
1,198
2,723
5,009
1,079
3,931
1,347
2,584
4Q
14,294
13,532
762
6,118
8,176
156
3,749
1,172
2,577
4,583
1,138
3,446
1,136
2,310
FY16
1Q
16,462
15,716
746
6,771
9,692
96
4,531
1,446
3,085
5,257
1,033
4,224
1,468
2,756
Variation (%)
QoQ
YoY
15
16
-2
11
19
-38
21
23
20
15
-9
23
29
19
32
33
17
36
30
310
32
34
31
30
25
32
34
30
2,110
463
1.1
0.3
78.0
45.0
34.1
21.5
18.1
1.0
5.1
2,164
494
1.1
0.3
78.0
47.6
33.9
20.9
17.7
0.9
4.6
2,475
495
1.2
0.2
80.0
44.3
34.2
19.5
16.5
1.0
5.2
2,711
643
1.2
0.3
76.0
47.5
34.2
19.1
16.1
0.8
4.6
2,898
692
1.1
0.3
76.0
45.9
34.1
18.0
15.2
0.9
5.1
3,772
1,284
1.4
0.5
67.0
45.7
34.0
19.3
15.1
0.7
4.6
4,429
1,447
1.5
0.5
68.0
43.9
34.3
18.7
14.7
0.9
5.6
4,711
1,404
1.5
0.5
71.0
45.0
33.0
18.0
14.2
0.7
4.8
5,762
1,875
1.7
0.6
68.0
46.3
34.5
20.7
17.4
0.9
4.9
22
34
99
171
29
2
10
9
21
#DIV/0!
0
-4
32
33
12
-100
192,290 198,290 224,610 240,610 269,430 280,040 308,220 324,100 355,570
185,060 189,820 215,260 229,710 256,420 267,510 295,280 311,990 340,950
7,230
8,470
9,350
10,900 13,010 12,530 12,940 12,110 14,620
62,500 51,990 75,320 70,420 92,660 78,160 111,370
0
0
42
49
9
0
41
50
9
0
40
52
8
0
39
53
8
0
40
53
7
0
40
54
6
1
38
55
6
1
41
48
10
1
42
47
10
1
Source: Company, MOSL
22 July 2015
5

Bajaj Finance
Story in charts
Exhibit 6: Nos. of loan disb. remains healthy at +37% YoY
Loans Disbursed (Nos '000)
1252
690
962
762
1531
1110
1162
1719
Exhibit 7: AUM grw. led by consumer & SME business
AUM (INR b)
AUM Gr. (%)
53
41
34
33
29
33
37
40
41
37
35
32
601
833 833
969
154 168 175 192 198 225 241 269 280 308 324 356
Source: MOSL, Company
Source: MOSL, Company
Exhibit 8: AUM Mix: SME now accounts for 47%
Consumer Finance
16
45
39
13
46
13
46
9
49
9
50
Commercial
SME Business
6
6 10 10
7
8
8
52
53
53
54
55
48
47
Exhibit 9: Opex remains under control
47.6
44.9
43.2
45.2 45.0
Cost income (%)
47.5
45.9
44.3
45.7
43.9
46.3
45.0
41
41
42
41
40
39
40
40
38
41
42
Source: MOSL, Company
Source: MOSL, Company
Exhibit 10: Asset quality remain stable
GNPA (%)
NNPA (%)
0.48 0.49 0.45
0.25 0.26 0.23
0.28 0.27
0.55
Exhibit 11: Healthy return ratios
RoE (%)
RoA (%)
3.6
4.0 4.0 4.0
3.6
4.0
3.2
3.6
2.8
3.6
2.8
3.6
0.2
1.1
0.2 0.19
1
1.1 1.14 1.14 1.15 1.18 1.13 1.41 1.5 1.51 1.69
23.2 26.4 26.4 20.4 18.4 20.8 18.4 20.4 18.4 22.4 19.2 19.6
Source: MOSL, Company
Source: MOSL, Company
22 July 2015
6

Bajaj Finance
Exhibit 12: Valuation metrics
63.7
Rating
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
DCBB
FB
JKBK
SIB
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
UNBK
INBK
CRPBK
ANDB
IDBI
DBNK
Public Aggregate
HDFC*
LICHF
DEWH
IHFL
IDFC
RECL
REPCO
POWF
SHTF
MMFS
BAF
NBFC Aggregate
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
CMP
Mcap
EPS (INR)
P/E (x)
BV (INR)
P/BV (x)
FY16
1.94
3.91
2.70
3.88
2.51
3.33
2.13
1.42
0.77
0.84
2.93
1.12
0.64
0.41
0.83
0.52
0.47
0.36
0.42
0.41
0.34
0.79
5.35
2.67
1.32
3.43
1.18
0.97
4.54
0.93
1.91
2.36
3.82
2.90
FY17
1.62
3.37
2.32
3.37
2.12
2.88
1.85
1.28
0.70
0.77
2.56
0.99
0.56
0.37
0.74
0.46
0.43
0.32
0.38
0.37
0.31
0.72
4.23
2.24
1.15
2.98
1.05
0.82
3.83
0.80
1.67
2.10
3.27
2.53
RoA (%)
FY16
1.72
1.89
1.75
1.51
1.66
2.03
1.07
1.07
0.79
0.47
0.72
0.67
0.35
0.66
0.58
0.58
0.54
0.62
0.58
0.36
2.52
1.50
1.28
3.91
2.20
3.13
2.16
3.06
2.27
2.60
3.05
FY17
1.78
1.86
1.69
1.60
1.71
2.09
1.15
1.12
0.97
0.59
0.80
0.82
0.43
0.78
0.65
0.65
0.64
0.66
0.69
0.44
2.55
1.56
1.32
3.79
2.19
3.16
2.12
3.12
2.56
2.67
2.95
RoE (%)
FY16
16.3
18.4
18.2
13.9
19.9
18.0
11.8
12.0
10.0
8.2
12.2
11.0
8.3
12.5
12.4
9.2
12.3
12.2
9.5
7.7
23.5
20.3
15.7
32.3
11.5
22.2
17.5
20.3
15.3
15.7
19.2
FY17
17.2
19.2
18.2
14.5
21.5
16.8
14.1
13.6
12.6
10.5
13.9
13.9
10.8
15.0
14.1
11.1
14.7
14.2
11.9
10.0
23.6
21.4
17.6
33.5
12.0
22.5
19.2
20.2
16.9
16.6
18.4
(INR) (USDb) FY16 FY17 FY16
317
28.9 22.9 27.4 11.1
1,114 43.8 49.1 59.2 22.7
590
21.9 37.2 43.2 15.9
728
20.8 23.6 29.2 30.8
823
5.4 60.6 77.2 13.6
957
8.7 41.8 52.1 22.9
131
0.6
6.9 9.4 19.1
71
1.9
5.7 7.1 12.4
104
0.8 13.1 18.0 8.0
24
0.5
2.2 3.1 10.8
133.4
19.1
269
31.5 28.0 34.9 9.2
139
4.1 23.2 32.3 6.0
172
1.8 33.8 47.4 5.1
153
1.1 21.9 29.2 7.0
165
1.7 37.4 47.6 4.4
133
1.0 25.7 33.1 5.2
51
0.1 16.5 21.9 3.1
71
0.7 20.6 25.5 3.4
64
1.6 14.4 19.7 4.5
44
0.4
9.7 13.6 4.5
43.8
7.7
1,346 33.3
37
44 24.2
487
3.9
34
43 14.2
473
1.1
53
68
8.9
713
4.1
63
75 11.4
157
3.9
13
14 12.5
293
4.5
62
74
4.8
691
0.7
25
29 27.9
263
5.5
54
62
4.9
880
3.1
68
84 13.0
266
2.4
17
20 15.9
5,133
4.3
215 268 23.8
66.7
16.1
FY17 FY16 FY17
8.9 131 151
18.8 285 330
13.7 218 254
24.9 188 216
10.7 328 389
18.4 287 332
14.0 62
71
9.9
50
55
5.8 136 150
7.7
28
31
15.8
7.3 230 258
4.3 219 247
3.6 421 459
5.2 184 206
3.5 319 358
4.0 284 310
2.3 141 158
2.8 170 188
3.3 157 173
3.2 130 141
5.9
18.5 169 194
11.4 182 217
7.0 358 410
9.5 208 239
10.9 109 120
4.0 300 357
23.6 152 180
4.2 285 330
10.5 462 528
13.4 113 127
19.2 1,344 1,568
13.6
*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries
Source: Company, MOSL
22 July 2015
7

Bajaj Finance
Financials and valuations
Income Statement
Y/E MARCH
Interest Income
Interest Expended
Net Interest Income
Change (%)
Other Operating Income
Other Income
Net Income
Change (%)
Operating Expenses
Operating Income
Change (%)
Provisions and W/Offs
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend
Balance Sheet
Y/E MARCH
Capital
Reserves & Surplus
Net Worth
Borrowings
Change (%)
Other liabilities & provisions
Total Liabilities
Investments
Change (%)
Advances
Change (%)
Net Fixed Assets
Other assets
Total Assets
2010
8,097
2,017
6,080
76.1
1,004
61
7,145
64.2
3,196
3,949
84.0
2,606
1,343
449
33.4
894
163.6
220
2011
12,838
3,710
9,128
50.1
1,085
138
10,351
44.9
4,606
5,745
45.5
2,046
3,699
1,229
33.2
2,470
176.2
366
2012
19,963
7,462
12,501
36.9
1,668
89
14,257
37.7
6,691
7,566
31.7
1,544
6,022
1,958
32.5
4,064
64.6
496
2013
29,248
12,057
17,191
37.5
1,689
177
19,057
33.7
8,523
10,534
39.2
1,818
8,716
2,803
32.2
5,913
45.5
747
2014
37,896
15,732
22,163
28.9
2,429
419
25,011
31.2
11,511
13,500
28.2
2,588
10,912
3,722
34.1
7,190
21.6
802
2015
51,200
22,483
28,717
29.6
2,618
364
31,699
26.7
14,284
17,415
29.0
3,846
13,569
4,591
33.8
8,979
24.9
903
2016E
66,236
29,039
37,197
29.5
2,932
801
40,931
29.1
17,554
23,377
34.2
6,096
17,281
5,893
34.1
11,388
26.8
1,594
(INR Million)
2017E
84,466
37,360
47,106
26.6
3,234
851
51,192
25.1
21,344
29,848
27.7
8,283
21,565
7,354
34.1
14,211
24.8
1,990
2010
366
11,159
11,525
32,268
100.2
43,793
3,018
10.2
40,318
70.1
505
-48
43,793
2011
366
13,215
13,581
67,086
107.9
4,552
85,219
56
-98.1
72,718
80.4
1,026
11,419
85,219
2012
413
19,923
20,336
102,264
52.4
6,667
129,267
55
-2.3
122,831
68.9
1,388
4,993
129,267
2013
495
33,173
33,668
133,490
30.5
11,051
178,209
53
-4.0
167,440
36.3
1,762
8,957
178,211
2014
498
39,411
39,909
197,496
47.9
8,776
246,180
282
436.3
229,710
37.2
2,199
13,990
246,180
2015
500
47,497
47,997
266,908
35.1
13,207
328,112
3,323
1,077.9
311,995
35.8
2,492
10,303
328,112
2016E
533
70,987
71,520
344,438
29.0
13,471
429,429
3,655
10.0
404,033
29.5
2,502
19,239
429,429
2017E
533
82,870
83,403
450,448
30.8
14,819
548,670
4,021
10.0
517,162
28.0
2,512
24,975
548,670
22 July 2015
8

Bajaj Finance
Financials and valuations
Ratios
Y/E MARCH
Spreads Analysis (%)
Yield on Advances
Cost of borrowings
Interest Spread
Net Interest Margin
Profitability Ratios (%)
RoE
RoA
RoA on AUM
Int. Expended/Int.Earned
Secur. Inc./Net Income
Efficiency Ratios (%)
Op. Exps./Net Income
Empl. Cost/Op. Exps.
Asset-Liability Profile (%)
Loans/Borrowings Ratio
CAR
Tier 1
Valuation
Book Value (INR)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
OPS (INR)
OPS Growth (%)
Price-OP (x)
Dividend per Share (INR)
Dividend Yield (%)
E: MOSt Estimates
2010
25.3
8.3
17.0
18.8
2011
22.7
7.5
15.2
15.0
2012
20.4
8.8
11.6
12.2
2013
20.2
10.2
9.9
11.7
2014
19.1
9.5
9.6
10.8
2015
18.9
9.7
9.2
10.4
2016E
17.8
9.5
8.3
10.2
2017E
17.8
9.4
8.4
10.0
8.0
2.5
24.9
14.1
19.7
3.8
28.9
10.5
24.0
3.8
37.4
11.7
21.9
3.8
3.8
41.2
8.9
19.5
3.4
3.4
41.5
9.7
20.4
3.1
3.2
43.9
8.3
19.1
3.0
3.1
43.8
7.2
18.3
2.9
2.9
44.2
6.3
44.7
31.1
44.5
31.4
46.9
28.4
44.7
28.8
46.0
29.6
45.1
31.6
42.9
32.4
41.7
32.7
124.9
28.0
26.0
108.4
20.0
16.8
120.1
17.5
15.0
125.4
22.0
18.7
116.3
21.0
18.0
116.9
18.0
14.2
117.3
19.0
16.0
114.8
19.0
16.0
315
16.3
313.6
16.4
24.4
163.6
210.0
107.9
84.0
47.5
6.0
371
13.8
365.2
14.0
67.4
176.0
76.1
156.8
45.3
32.7
10.0
0.2
487
10.5
486.0
10.6
98.4
45.9
52.2
183.1
16.8
28.0
12.0
0.2
680
7.5
677.4
7.6
119.4
21.3
43.0
212.6
16.1
24.1
15.1
0.3
802
6.4
798
6.4
144.5
21.1
35.5
271.4
27.6
18.9
16.1
0.3
960
5.3
950
5.4
179.6
24.2
28.6
348.3
28.4
14.7
18.1
0.4
1,342
3.8
1,342
3.8
213.8
19.0
24.0
438.8
26.0
11.7
29.9
0.6
1,566
3.3
1,566
3.3
266.8
24.8
19.2
560.3
27.7
9.2
37.3
0.7
22 July 2015
9

Bajaj Finance
Corporate profile: Bajaj Finance
Company description
Bajaj Finance is a subsidiary of Bajaj Finserv, which
holds 61% into the company. The company has
transformed itself from a captive auto financier
offering two wheeler loans for Bajaj Auto to a one
of the most successful well diversified retail NBFC.
The company operates in over ten business
segments across consumer, SME and commercial
businesses and is market leader in consumer
durable and two wheeler financing (18% market
share), lifestyle financing and is a large player in
loan against property segment (15% market share).
Exhibit 13: Sensex rebased
5,900
4,900
3,900
2,900
1,900
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Bajaj Fin.
Sensex - Rebased
Exhibit 14: Shareholding pattern (%)
Jun-15
Promoter
DII
FII
Others
57.6
5.8
18.1
18.5
Mar-15
61.6
5.6
13.6
19.2
Jun-14
61.6
7.1
12.2
19.1
Exhibit 15: Top holders
Holder Name
Maharashtra Scooters Ltd
Government of Singapore
Acacia Partners LP
Pinebridge Investments Asia Limited A/c
HDFC Trustee Company Ltd A/c HDFC
% Holding
3.5
2.8
1.1
1.1
1.1
Note: FII Includes depository receipts
Exhibit 16:
Top management
Name
Rahul Bajaj
Nanoo Pamnani
Sanjiv Bajaj
Rajeev Jain
Designation
Chairman
Vice Chairman
Vice Chairman
Managing Director
Exhibit 17: Directors
Name
Rahul Bajaj
Nanoo Pamnani*
Sanjiv Bajaj
Rajeev Jain
D S Mehta*
Dipak Poddar*
Gita Piramal*
*Independent
Name
Omkar Goswami*
Ranjan Sanghi*
D J Balaji Rao*
Rajendra Lakhotia*
Rajiv Bajaj
Madhur Bajaj
Exhibit 18: Auditors
Name
Dalal & Shah
Type
Statutory
Exhibit 19: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
MOSL
forecast
213.8
266.8
Consensus
forecast
217.4
270.5
Variation
(%)
-1.7
-1.4
22 July 2015
10

Bajaj Finance
NOTES
22 July 2015
11

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