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Bajaj Finance and HDFC AMC are valued in different ways.
Bajaj Finance is valued on excess return and HDFC AMC on discounted cash flow, because the two businesses do not work the same way. Below, each is set out on its own record and its own value drivers; the two fair values sit in the full valuations.
- Valuation method: Bajaj Finance on excess return; HDFC AMC on discounted cash flow.
- Size: Bajaj Finance is worth about 6.1 times HDFC AMC on the stock market.
- Record: Bajaj Finance has grown revenue faster: Bajaj Finance compounded at about 21% a year (FY2020–FY2026) and HDFC AMC at about 12% (FY2019–FY2026).
- What to watch: return on equity at Bajaj Finance; assets under management at HDFC AMC.
| Bajaj Finance | HDFC AMC | |
|---|---|---|
| Price | ₹1,117 | ₹2,663 |
| Market cap | ₹6.95L Cr | ₹1.14L Cr |
| P/E | 32.0 | 38.4 |
| P/B | 6.10 | 12.38 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Discounted cash flow |
01Two businesses
A lender built on the EMI
Bajaj Finance is India's largest non-bank consumer lender and part of the Bajaj Finserv group. It made its name financing consumer durables at the point of sale — the EMI on a phone or a fridge — and has grown into personal loans, small-business loans, loans against property, gold loans and, through its listed subsidiary Bajaj Housing Finance, home loans.
Managing India's savings
HDFC Asset Management Company runs HDFC Mutual Fund, one of India's largest fund houses, and is a subsidiary of HDFC Bank. It manages equity, debt, hybrid and index funds for millions of investors, many of them saving through monthly SIPs.
02The records side by side
Bajaj Finance has grown revenue faster: Bajaj Finance compounded at about 21% a year (FY2020–FY2026) and HDFC AMC at about 12% (FY2019–FY2026). By revenue, Bajaj Finance is about 19.9 times the size of HDFC AMC. Bajaj Finance kept 23.6% of revenue as net profit in FY2026; HDFC AMC kept 69.3% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: Bajaj Finance · HDFC AMC.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Return on equityThe premium only holds if returns stay well above the cost of equity. The figure in 'What each price assumes' shows the return today's price needs.
- Loan growthValue compounds with the book. A slowdown in growth hits a premium lender harder than a cheaply priced one.
- Assets under managementMarket gains and inflows lift fee income.
- Equity shareEquity funds earn higher fees than debt funds.
05What could go wrong
- Regulatory tighteningThe RBI has raised capital requirements on unsecured consumer lending and acted against specific Bajaj Finance products in November 2023.
- A consumer-credit downturnRising defaults among stretched borrowers would hit provisions and growth together.
- Market fallsA sustained fall in equities cuts both assets and inflows.
- Fee regulationSEBI caps on expense ratios reduce revenue.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Bajaj Finance or HDFC AMC better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Bajaj Finance trades at 32.0 times earnings and 6.10 times book value, and HDFC AMC at 38.4 times earnings and 12.38 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Bajaj Finance and HDFC AMC?
Bajaj Finance is India's largest non-bank consumer lender and part of the Bajaj Finserv group. HDFC Asset Management Company runs HDFC Mutual Fund, one of India's largest fund houses, and is a subsidiary of HDFC Bank.
Are Bajaj Finance and HDFC AMC valued the same way?
No. Bajaj Finance is valued on excess return and HDFC AMC on discounted cash flow, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Bajaj Finance and HDFC AMC?
Worked backwards from the share price, Bajaj Finance needs about 24.9% return on equity and HDFC AMC about 34% growth, against 20.1% and 20% in their own records.