Bajaj Finserv's intrinsic value using Intellectual Capital analysis

Bajaj Finserv

BSE : 532978

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NSE : BAJAJFINSV

Industry : Finance General

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ISIN : INE918I01018

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FreeFloat : 40.00%

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FnO : Yes

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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 Financial Services | Nifty Financial Services 25/50 | Nifty High Beta 50 | BSE CARBONEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE Diversfied Financials Rev Growth | Nifty Services Sector

Intellectual Capital (IC)	48,934.29
Net Worth (NW)	58,293.98
Intrinsic Worth (IW)	107,228.30
Market Cap (MC)	153,863.60
Economic Value Added	-3,684.10

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	45.64%
IC Gross Margin (EBITDA/IC)	41.95%
IC Net Margin (NPT/IC)	12.73%
Knowledge Turnover (Sales/IC)	1.36
Market to Intrinsic Value (MC/IW)	1.43

As Of	Intrinsic Value	Market Price
31 Mar 2021	Rs. 6,738.09	Rs. 9,668.60
22 Jun 2021	-	Rs. 12,131.65

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : No	Sell	10 DMA : Rs. 11,914.64	Reduce	Sell
KB > 50% : No		50 DMA : Rs. 11,132.92
0 < M2IV < 1 : No		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

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

Dec-20
C
15958.53
15960.72
5161.42
5037.58
2779.16
2081.85
2509.59

Mar-21
C
15386.88
15387.25
4641.16
4505.93
2358.50
979.06
338.77

* C - Consolidated, S - Standalone