On this page ▾
Bajaj Finserv and HDFC Bank are valued in different ways.
Bajaj Finserv is valued on estimate withheld and HDFC Bank on excess return, 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 Finserv on estimate withheld; HDFC Bank on excess return.
- Size: HDFC Bank is worth about 620.0 times Bajaj Finserv on the stock market.
- Record: HDFC Bank has grown revenue faster: Bajaj Finserv compounded at about 19% a year (FY2020–FY2026) and HDFC Bank at about 22% (FY2019–FY2026).
- What to watch: the value of bajaj finance at Bajaj Finserv; return on equity at HDFC Bank.
| Bajaj Finserv | HDFC Bank | |
|---|---|---|
| Price | ₹1,865 | ₹804 |
| Market cap | ₹0.02L Cr | ₹12.40L Cr |
| P/E | 0.2 | 15.5 |
| P/B | 0.02 | 2.13 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Excess return |
01Two businesses
A holding company for lending and insurance
Bajaj Finserv is the financial-services holding company of the Bajaj group. Its biggest asset is its majority stake in Bajaj Finance, India's largest non-bank consumer lender. It also owns life and general insurance businesses run for years as joint ventures with Allianz, and in 2025 it agreed to buy out Allianz's stake in them.
India's largest private bank, reshaped by a merger
HDFC Bank is India's largest private-sector bank, built on retail lending, low-cost current and savings deposits and a long record of keeping bad loans low. In July 2023 it merged with HDFC Ltd, the housing-finance company that founded it, adding a large home-loan book and bringing the group's life insurer, general insurer and asset manager under the bank.
02The records side by side
HDFC Bank has grown revenue faster: Bajaj Finserv compounded at about 19% a year (FY2020–FY2026) and HDFC Bank at about 22% (FY2019–FY2026). By revenue, HDFC Bank is about 3.3 times the size of Bajaj Finserv. Bajaj Finserv kept 13.1% of revenue as net profit in FY2026; HDFC Bank kept 15.3% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Bajaj Finserv · HDFC Bank.
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
- The value of Bajaj FinanceMost of Bajaj Finserv's value follows the listed price of its Bajaj Finance stake.
- Insurance valueThe life and general insurers add value that does not show up fully in reported profit.
- Return on equityA bank is worth more than its book only to the extent it earns above its cost of equity. The 'what each price assumes' figure above shows how much return today's price already takes for granted.
- Deposit growthHow fast it gathers cheap deposits sets how fast it can lend without pushing up its funding costs.
05What could go wrong
- ConcentrationBajaj Finance's fortunes dominate Bajaj Finserv's.
- Insurance regulationRules on commissions and product design can squeeze insurer profits.
- Slower growth for longerIf the deposit catch-up takes longer, loan growth stays below its historical pace.
- Interest-rate cutsFalling rates can squeeze lending margins before deposit costs adjust.
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 Finserv or HDFC Bank 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 Finserv trades at 0.2 times earnings and 0.02 times book value, and HDFC Bank at 15.5 times earnings and 2.13 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 Finserv and HDFC Bank?
Bajaj Finserv is the financial-services holding company of the Bajaj group. HDFC Bank is India's largest private-sector bank, built on retail lending, low-cost current and savings deposits and a long record of keeping bad loans low.
Are Bajaj Finserv and HDFC Bank valued the same way?
No. Bajaj Finserv is valued on estimate withheld and HDFC Bank on excess return, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Bajaj Finserv and HDFC Bank?
Worked backwards from the share price, Bajaj Finserv needs about 0% growth and HDFC Bank about 15.0% return on equity, against 21% and 15.1% in their own records.