Bajaj Holdings & Investment revenue returned to growth in FY2017: increased 78.4% vs. 12.2% decline a year earliner
18-05-2017 • About Bajaj Holdings & Investment (
$BAJAJHLDNG) • By InTwits
Bajaj Holdings & Investment reported FY2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bajaj Holdings & Investment is a fast growth stock: FY2017 revenue growth was 78.4%, 5 year revenue CAGR was 23.1% at FY2017 ROIC 3.8%
- Bajaj Holdings & Investment has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has potentially unprofitable business model: ROIC is 3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 78.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 12.3% to 13.9% in FY2017.
Net Income margin dropped on 185 pp from 475% to 291% in FY2017.
Investments (CAPEX, working capital and M&A)
Bajaj Holdings & Investment's CAPEX/Revenue was 0.013% in FY2017. The company showed almost no change in CAPEX/Revenue from FY2014 to FY2017. It's average CAPEX/Revenue for the last three years was 0.067%.
Return on investment
The company operates at good ROE (14.9%) while ROIC is low (3.8%). ROIC increased slightly on 0.81 pp from 3.0% to 3.8% in FY2017. ROE decreased slightly on 0.85 pp from 15.8% to 14.9% in FY2017. ROE declined at -1.1 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash dropped on 99.1%.
Financial and operational results
FY ended 31-03-2017
Bajaj Holdings & Investment ($BAJAJHLDNG) key annual financial indicators| mln. INR | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 3,395 | 4,276 | 5,428 | 4,765 | 8,503 | 78.4% |
| EBITDA | 3,241 | 3,946 | 5,030 | 4,354 | 6,357 | 46.0% |
| Net Income | 18,564 | 19,876 | 20,292 | 22,652 | 24,732 | 9.2% |
Balance Sheet
|
|---|
| Cash | 332 | 603 | 11 | 14,230 | 125 | -99.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 1 | 9 | 1 | -87.1% |
Ratios
|
|---|
| Revenue growth | 12.8% | 25.9% | 27.0% | -12.2% | 78.4% | |
| EBITDA growth | 12.0% | 21.8% | 27.5% | -13.4% | 46.0% | |
|
|---|
| EBITDA Margin | 95.4% | 92.3% | 92.7% | 91.4% | 74.8% | -16.6% |
| Net Income Margin | 546.7% | 464.9% | 373.8% | 475.4% | 290.9% | -184.5% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.2% | 0.0% | -0.2% |
|
|---|
| ROIC | 3.4% | 3.5% | 3.9% | 3.0% | 3.8% | 0.8% |
| ROE | 19.5% | 17.8% | 16.0% | 15.8% | 14.9% | -0.9% |
| Net Debt/EBITDA | -0.1x | -0.2x | -0.0x | -3.3x | -0.0x | 3.2x |
Peers in Finance (including NBFCs)
Below you can find Bajaj Holdings & Investment benchmarking vs. other companies in Finance (including NBFCs) industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Sks Microfinance ($SKSMICRO) | -25.6% | 55.0% | 47.3% | 64.5% | - |
| Motilal Oswal Financial Services ($MOTILALOFS) | 0.4% | -0.9% | 64.7% | 39.8% | - |
| K.Z.Leasing & Finance ($KZLFIN) | 41.6% | - | - | 26.5% | - |
| Bajaj Finserv ($BAJAJFINSV) | 28.1% | 18.8% | 26.8% | 23.9% | - |
| Muthoot Capital Services ($MUTHTFN) | 59.3% | 48.1% | 20.5% | 19.5% | - |
| |
|---|
| Median (26 companies) | 26.6% | 19.8% | 13.3% | 8.2% | 43.9% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | - | 25.9% | 27.0% | -12.2% | 78.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Pnb Gilts ($PNBGILTS) | 96.4% | 96.4% | 96.1% | 95.4% | - |
| Rural Electrification Corporation ($RECLTD) | 97.3% | 96.7% | 93.3% | 92.0% | - |
| IDFC Limited ($IDFC) | 89.6% | 87.0% | 81.7% | 83.5% | - |
| Sakthi Finance ($SAKTHIFIN) | - | - | 75.1% | 75.1% | - |
| Srei Infrastructure Finance ($SREINFRA) | 85.7% | 81.7% | 78.5% | 72.8% | 66.2% |
| |
|---|
| Median (22 companies) | 65.4% | 65.5% | 59.4% | 60.5% | 66.2% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 95.4% | 92.3% | 92.7% | 91.4% | 74.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | 8.5% | 12.3% | 5.4% | 6.0% | 27.9% |
| IDFC Limited ($IDFC) | 0.1% | 0.2% | 0.5% | 4.8% | - |
| Bengal & Assam Company ($BENGALASM) | 4.5% | 1.2% | 2.1% | 4.1% | - |
| Motilal Oswal Financial Services ($MOTILALOFS) | 5.3% | 1.7% | 3.4% | 2.5% | - |
| Cholamandalam Investment And Finance Company ($CHOLAFIN) | 1.4% | 0.8% | 0.8% | 1.8% | - |
| |
|---|
| Median (18 companies) | 0.8% | 1.1% | 0.7% | 1.0% | 27.9% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 0.0% | 0.0% | 0.0% | 0.2% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | 12.0% | 9.7% | 11.9% | 7.8% | - |
| Sks Microfinance ($SKSMICRO) | - | 4.1% | 6.6% | 7.6% | - |
| Nalwa Sons Investments ($NSIL) | - | - | - | 6.4% | - |
| Shriram City Union Finance ($SHRIRAMCIT) | 5.8% | 5.8% | 5.7% | 4.6% | - |
| Rural Electrification Corporation ($RECLTD) | 4.7% | 5.2% | 4.7% | 4.3% | - |
| |
|---|
| Median (54 companies) | 4.6% | 4.2% | 4.2% | 4.2% | 1.2% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 3.4% | 3.5% | 3.9% | 3.0% | 3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Pnb Gilts ($PNBGILTS) | 11.2x | 11.3x | 8.8x | 15.0x | - |
| Srei Infrastructure Finance ($SREINFRA) | 6.2x | 7.5x | 8.0x | 8.7x | 8.4x |
| Mahindra & Mahindra Financial Services ($M&MFIN) | 6.6x | 6.7x | 7.0x | 8.1x | - |
| Rural Electrification Corporation ($RECLTD) | 8.0x | 7.5x | 8.0x | 7.8x | - |
| Magma Fincorp ($MAGMA) | 8.5x | 7.0x | 7.7x | 7.5x | - |
| |
|---|
| Median (36 companies) | 3.6x | 3.9x | 0.0x | 0.6x | 8.4x |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | -0.1x | -0.2x | -0.0x | -3.3x | -0.0x |
