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Bajaj Finserv and Shriram Finance are valued in different ways.
Bajaj Finserv is valued on estimate withheld and Shriram Finance 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; Shriram Finance on excess return.
- Size: Shriram Finance is worth about 114.0 times Bajaj Finserv on the stock market.
- Record: On revenue the two have grown at much the same pace: Bajaj Finserv compounded at about 19% a year (FY2020–FY2026) and Shriram Finance at about 19% (FY2020–FY2026).
- What to watch: the value of bajaj finance at Bajaj Finserv; return on equity at Shriram Finance.
| Bajaj Finserv | Shriram Finance | |
|---|---|---|
| Price | ₹1,865 | ₹970 |
| Market cap | ₹0.02L Cr | ₹2.28L Cr |
| P/E | 0.2 | 18.0 |
| P/B | 0.02 | 3.46 |
| 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.
Lending to India's truck owners
Shriram Finance was formed in December 2022 by merging Shriram Transport Finance and Shriram City Union Finance. It is India's largest lender for used commercial vehicles, financing truck operators and small transport businesses, many of them first-time borrowers.
02The records side by side
On revenue the two have grown at much the same pace: Bajaj Finserv compounded at about 19% a year (FY2020–FY2026) and Shriram Finance at about 19% (FY2020–FY2026). By revenue, Bajaj Finserv is about 3.1 times the size of Shriram Finance. Bajaj Finserv kept 13.1% of revenue as net profit in FY2026; Shriram Finance kept 20.8% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Bajaj Finserv · Shriram Finance.
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 equityHigh returns for lending to riskier borrowers.
- Loan growthGrowth in vehicle and small-business lending.
05What could go wrong
- ConcentrationBajaj Finance's fortunes dominate Bajaj Finserv's.
- Insurance regulationRules on commissions and product design can squeeze insurer profits.
- Freight cycleA slowdown in trucking hits borrowers' ability to repay.
- Credit qualitySmall-business borrowers are vulnerable in downturns.
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 Shriram Finance 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 Shriram Finance at 18.0 times earnings and 3.46 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 Shriram Finance?
Bajaj Finserv is the financial-services holding company of the Bajaj group. Shriram Finance was formed in December 2022 by merging Shriram Transport Finance and Shriram City Union Finance.
Are Bajaj Finserv and Shriram Finance valued the same way?
No. Bajaj Finserv is valued on estimate withheld and Shriram Finance 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 Shriram Finance?
Worked backwards from the share price, Bajaj Finserv needs about 0% growth and Shriram Finance about 20.3% return on equity, against 21% and 16.1% in their own records.