Sheet 1: Ratio Analysis
This sheet outlines key financial ratios used to assess Bajaj Finserv’s
performance.
Liquidity Ratios
Current Ratio and Quick Ratio are defined but not calculated. These
would typically assess short-term solvency.
Assumption: Other Current Assets are considered Quick Assets, which may
overstate liquidity.
Efficiency Ratios
Accounts Receivable Turnover assumes all RFO is on credit, which may
not reflect actual collection efficiency.
Inventory Turnover is marked N/A — appropriate since Bajaj Finserv is a
financial services firm and doesn’t hold inventory.
Profitability Ratios
Profit Margin, Asset Turnover, and Return on Assets are listed but
not calculated. These would help assess operational efficiency and
profitability.
Leverage & Coverage
Debt to Assets Ratio and Time Interest Earned are defined. Notably,
there’s no finance cost, indicating low debt or reliance on equity funding.
Market Ratios
EPS and PE Ratio are included, with EPS calculated using net income and
shares outstanding. PE uses market price from Yahoo Finance.
Sheet 2: Financial Statements (Balance Sheet & P&L)
Balance Sheet Trends (2021–2025)
Shareholder’s Funds grew significantly from ₹3,800.92 Cr (2021) to
₹8,371.89 Cr (2025), indicating strong equity growth.
Current Investments dominate assets, rising from ₹3,494.97 Cr to
₹7,884.12 Cr — consistent with a financial services firm.
Liabilities remain low, especially borrowings, suggesting conservative
financial leverage.
Cash & Equivalents dropped sharply in 2025, possibly due to
reinvestment or asset reallocation.
Profit & Loss Trends
Revenue from Operations increased nearly 7x from ₹323.73 Cr (2021)
to ₹2,261.68 Cr (2025).
Net Profit rose from ₹178.78 Cr to ₹1,558.87 Cr — a strong upward
trajectory.
Expenses grew modestly compared to revenue, indicating operational
efficiency.
EPS increased from ₹11.2 (2021) to ₹9.8 (2025), though it dipped in 2023,
possibly due to share dilution or lower profits.
Interpretations/Inferences
Bajaj Finserv shows strong equity growth, low debt, and high
profitability, typical of a well-managed financial services firm.
The company is asset-light, with most assets in current investments,
aligning with its business model.
Revenue and profit growth are robust, with efficient cost control.
EPS volatility may reflect changes in share count or market conditions.
