Summary:
This report was published on 25nd Mar 2024, so all prices and news are dated accordingly. This is a research note on 3 leading Indian NBFC firms, Bajaj Finance, Jio Financial Services and L&T Finance Holdings. We profile the firms in terms of their structure, business segments, share price history and key financial parameters. Next we capture their key Qualitative Aspects and do a SWOT analysis of them, to help investors understand these firms better. This report is for educational purposes. We do not set any price targets nor make any company-specific recommendations.
Introduction
In this note, we examine three large players from the Indian Non-Banking Financial (NBFC) Industry.
Brief Profiles – Bajaj Finance Ltd. CMP ₹ 6,760
- Bajaj Finance (BFL) was started in 1987 as a vehicle financing firm and is now is one of the largest and most diversified loan NBFCs in India. BFL is mainly engaged in the business of lending, and has a portfolio across retail, SME and commercial customers with a presence in urban and rural India. It also accepts public and corporate deposits. BFL has two wholly owned subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities, through which it offers home loans and brokerage services & lending.
- Bajaj Finserv Ltd. is the holding company for the financial services businesses of the Bajaj group. It holds 51.42% stake in BFL. Bajaj Finserv offers general & life insurance, and advisory and investment planning services through subsidiaries Bajaj Allianz General Insurance & Bajaj Allianz Life Insurance.
- Leadership in BFL is Sanjiv Bajaj (Chairman), Rajeev Jain (MD&CEO) and Sandeep Jain (CFO).
Jio Financial Services CMP ₹ 345
- Jio Financial Services (JFS) started as Reliance Strategic Investments in 1999, but JFS was incorporated in Jul’23. It is a systemically important Non-Deposit taking NBFC (NBFC-ND-SI) registered with RBI. It is a holding company and operates through its consumer-facing subsidiaries namely Jio Finance Ltd., Jio Insurance Broking, Jio Payment Solutions and a JV, Jio Payments Bank. For its asset management business, JFS has entered into a JV with BlackRock with an initial investment of US$ 150 m.
- JFS was demerged from Reliance Industries and listed in July’23. Shares were awarded in a ratio 1:1, so for every share held of Reliance, shareholders received one share of JFS.
- Management – KV Kamath (Chairman), Hitesh Kumar Sethia (MD&CEO), and Abhishek Pathak (CFO).
L&T Finance Holdings CMP ₹ 155
- L&T Finance Holdings (LTF) offers a diverse range of financial products and services such as Farm equipment finance, Two-wheeler finance, Micro Loans, Consumer loans, home loans, Loans against property (LAP), Real estate finance, infra finance, Infra Debt Fund and other services.
- It is registered with RBI as a Systemically Important Non-Deposit Accepting Core Investment Co (NBFC-CIC). LTF has an operational presence across India and is headquartered in Mumbai, Mah.
- LTF is now in the process of changing its name from L&T Finance Holdings to L&T Finance.
- The promoter is L&T Ltd. LTF successfully completed the merger of subsidiaries, L&T Finance, L&T Infra Credit and L&T Mutual Fund Trustee with itself. This will simplify operations and save costs.
- Management – Sudipta Roy (MD&CEO), Sachinn Joshi (CFO) and S. N. Subrahmanyan (Chairperson).
This report can be downloaded as a PDF file using link below.
Disclaimer This document has been prepared by JainMatrix Investments Bangalore (JMI), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JMI. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JMI has not independently verified the accuracy or completeness of the same. Punit Jain discloses that he is an investor in Bajaj Finance Ltd (<1%) since April 2003. He has no positions in L&T Finance or Jio Financial Services, but owns shares in group companies Larsen & Toubro, L&T Technology Services and LTIM; and Reliance Industries (all <1%) as on date of this report. Neither JMI nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from a RIA Registered Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JMI has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at [email protected] Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747. Logo/brand name –
news24.sa.com 