Bajaj Finserv's intrinsic value using Intellectual Capital analysis

Bajaj Finserv

BSE : 532978

|

NSE : BAJAJFINSV

Industry : Finance General

|

ISIN : INE918I01018

|

FreeFloat : 40.00%

|

FnO : Yes

|

LotSize : 125

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Low Volatility 30 | Nifty Financial Services | Nifty Financial Services 25/50 | BSE Momentum | Nifty High Beta 50 | Nifty100 Alpha 30 | BSE CARBONEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE Diversfied Financials Rev Growth | Nifty Services Sector

Intellectual Capital (IC)	80,417.22
Net Worth (NW)	54,619.33
Intrinsic Worth (IW)	135,036.50
Market Cap (MC)	93,132.72
Economic Value Added	-1,931.63

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	59.55%
IC Gross Margin (EBITDA/IC)	25.45%
IC Net Margin (NPT/IC)	9.41%
Knowledge Turnover (Sales/IC)	0.79
Market to Intrinsic Value (MC/IW)	0.69

As Of	Intrinsic Value	Market Price
30 Sep 2020	Rs. 8,485.54	Rs. 5,852.35
23 Oct 2020	-	Rs. 5,831.55

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : No	Sell	10 DMA : Rs. 5,927.38	Sell	Strong Sell
KB > 50% : Yes		50 DMA : Rs. 6,075.09
0 < M2IV < 1 : Yes		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Dec-17
C
7665.40
7665.51
2958.49
2931.37
1763.53
1203.45
748.59

Mar-18
C
8829.28
8829.35
2860.89
2831.24
1614.86
1113.83
685.46

Jun-18
C
8769.73
8771.06
3367.28
3324.31
1990.26
1328.52
835.30

Sep-18
C
9698.14
9698.39
3402.74
3350.67
1810.39
1190.59
1100.51

Dec-18
C
11141.05
11141.60
4065.89
4006.01
2224.02
1420.80
1992.73

Mar-19
C
12994.14
12994.52
4084.95
4013.78
2130.07
838.74
1588.87

Jun-19
C
12271.66
12272.26
4406.27
4308.79
2255.24
1454.21
1763.40

Sep-19
C
14221.86
14224.22
5055.63
4939.60
2626.36
2021.23
2113.65

Dec-19
C
14558.92
14560.74
5162.76
5046.57
2627.16
1978.05
2022.72

Mar-20
C
13294.25
13294.25
3472.32
3345.23
792.90
540.11
755.35

Jun-20
C
14189.99
14192.01
5088.69
4963.31
2568.08
1922.22
2400.13

Sep-20
C
15049.58
15051.59
4610.81
4496.80
2156.60
1618.27
986.29

* C - Consolidated, S - Standalone