Company Analysis and Business Evaluation

You are a financial analyst working for an investment research firm. Your task is to analyse Bajaj Finance Ltd. using its financial statements and annual reports. You will evaluate the company’s business model, financial performance, EPS, asset quality and competitive position against Shriram Finance and Cholamandalam. The analysis will help you determine the company’s overall financial performance and identify the stronger company among the three.

Tools Required:

• TradingView

• NSE India / BSE India

• Company Annual Report

• ChatGPT or another AI tool

Topic : Fundamental & Ratio Analysis

1. Company analysis

2. Industry analysis

3. Macroeconomic analysis

4. Revenue and cost drivers

5. Liquidity ratios, Profitability ratios, Leverage ratios, Efficiency ratios

Select an Indian Listed Company

Open TradingView or Screener.in and search for the selected company

Example : Company: Bajaj Finance

Note: You can download the annual report for the recent year 2025-26 from the investor section of the Bajaj Finance website, or download it from BSE or NSE

https://cms-assets.bajajfinserv.in/is/content/bajajfinance/annual-report-fy-2026?scl=1&fmt=pdf

Understand the Business

Using the company's Annual Report and Investor Presentation, identify:

• What products and services does the company offer?

• Who are its major customers?

• What are its major business segments?

• How does the company generate revenue?​

• What are the major factors driving revenue?\

• What are the company's major operating costs?

• What are its key competitive advantages?

• What are the major business risks?

Use AI for Business Analysis

Enter a prompt such as:Companies: Bajaj Finance and its competitors

"Analyse the business model of Bajaj Finance using its latest annual report and investor presentation. Explain its main financial products and services, major customer segments, business segments, revenue sources, key revenue drivers, major costs, competitive advantages and key business risks. Present the findings in a concise table."

Student Output:
Prepare a Business Model Snapshot showing:

Review AI Output

Interpret AI Output:

Takeaway:
Bajaj Finance mainly earns interest by lending money to different customer segments. Its growth depends on expanding its loan book and customer base, while its major risks are credit losses, funding costs and regulation.

Company: Bajaj Finance Ltd. | Period: Analyse the latest 3–5 financial years available.

Data to Collect

From TradingView, Screener.in, and the Investor Presentation, collect the following:

1. Revenue / Total Income

2. Operating Profit

3. Net Profit

4. EPS

5. Asset Quality (Gross NPA & Net NPA) (New Metric for Financial Companies)

Open TradingView

Open TradingView: https://in.tradingview.com/

In the search bar, search for your company (e.g., Bajaj Finance Ltd. – NSE: BAJFINANCE).

Open the Overview page.

Click Financials.

Select “Statements” to view:

Income Statement

Balance Sheet

Cash Flow

Select “Annual” (Annual Reports) to view year-wise financial data

Understand the financial information for the latest years.

Income Statement Analysis

Note for Finance Companies: Unlike manufacturing companies, an NBFC's primary cost is borrowing money. Pay close attention to the "Total interest expense (banks)" line item in TradingView to understand their cost of funds.

A. Revenue Growth Analysis:

• 2024 → ₹540.95B (+34.2%)

• 2025 → ₹688.59B (+27.29%)

• 2026 → ₹820.79B (+19.2%)

• Find Out the Reason: Investigate why revenue increased using Google Search, Annual Reports, or AI tools.

• Open AI Tool – ChatGPT / Gemini / Grok

Enter Prompt:
“Analyze Bajaj Finance's revenue growth from 2024 to 2026. Explain why revenue increased each year and identify the major factors responsible for the strong growth, especially from 2024 to 2026. Consider AUM, new loans, customer growth, interest income, product diversification, digital expansion and geographic expansion.”

Review AI Output :

Interpret AI Output

Revenue Growth Analysis – Bajaj Finance

Revenue Growth Analysis – Bajaj Finance

Bajaj Finance’s revenue grew strongly from 2024 to 2026. The main reasons were:

1. Higher AUM – The company’s total loan portfolio increased significantly, generating more income.

2. More customers and loans – A growing customer base and higher number of new loans increased revenue.

3. Higher interest income – More loans resulted in higher interest earnings.

4. Product diversification – Growth in gold loans, car loans and mortgages helped increase business.

5. Digital expansion – Digital technology and AI helped the company reach customers and operate more efficiently.

Conclusion:
Bajaj Finance’s strong revenue growth was mainly driven by more loans, more customers, higher AUM, increased interest income and expansion into different loan products.

B. Operating Profit Growth Analysis

Calculate the growth for Operating Income. For Bajaj Finance:

• 2024 → ₹335.63B 

• 2025 → ₹415.66B (+23.8%) 

• 2026 → ₹498.68B (+20.0%) 

Find Out the Reason: Investigate why operating profit increased using Google Search, Annual Reports, or AI tools.

AI Prompt:

“Analyze Bajaj Finance's operating profit growth from 2024 to 2026. Explain why operating profit increased each year. Consider revenue growth, AUM, interest income, operating expenses, customer growth and digital efficiency.”

Review AI Output

C. Net Profit Growth Analysis

• 2024 → ₹144.51B

• 2025 → ₹166.38B (+15.1%)

• 2026 → ₹190.17B (+14.3%)

Find Out the Reason for Net Profit Growth

Prompt:

“Analyze Bajaj Finance's net profit growth from 2024 to 2026. Explain why net profit increased each year. Consider revenue growth, AUM, interest income, operating expenses, credit costs and customer growth.”

Review AI Output

Interpret AI Output – Net Profit Growth

Net Profit Analysis – Bajaj Finance

Bajaj Finance’s net profit increased from ₹144.51 billion in FY24 to ₹190.17 billion in FY26.

Main reasons:

1. Higher revenue and interest income – More loans generated more interest income.

2. Higher AUM – Growth in the loan portfolio supported profit growth.

3. More customers and loans – A larger customer base increased business.

4. Higher expenses – Operating expenses and credit costs also increased, which limited the rate of profit growth.

5. Overall strong business growth – Despite higher costs, revenue growth was sufficient to increase net profit.

Conclusion:
Bajaj Finance’s net profit grew steadily because of higher AUM, more customers, increased lending and interest income, although rising operating and credit costs reduced the pace of profit growth.

D. EPS (Earnings Per Share) Growth Analysis

• 2024 → ₹23.69 (+24.33%)

• 2025 → ₹26.89 (+13.53%)

• 2026 → ₹30.60 (+13.79%)

Find Out the Reason for EPS Growth

Prompt:

“Analyze Bajaj Finance's EPS growth from 2024 to 2026. Explain in simple language why EPS increased each year. Consider net profit growth, number of shares outstanding and overall business performance.”

Review AI Output

Interpret AI Output – EPS Growth

EPS Growth Analysis – Bajaj Finance

Bajaj Finance’s EPS increased from ₹23.69 in FY24 to ₹30.60 in FY26.

Main reasons:

1. Higher net profit – Rising profits increased earnings available to each shareholder.

2. Business growth – Higher AUM, more customers and increased lending supported profit growth.

3. More earnings per share – Net profit grew faster than the number of shares outstanding.

4. Slight increase in shares – The small rise in shares slightly reduced the rate of EPS growth, but EPS still increased strongly.

Conclusion:
Bajaj Finance’s EPS grew steadily because net profit increased strongly and outpaced the growth in shares outstanding, resulting in higher earnings for shareholders.

E. Asset Quality Analysis (Gross NPA & Net NPA)

Check the company's Investor Presentation to find the NPA percentages.

AI Prompt: "Analyze Bajaj Finance's Gross and Net NPA trends over the last 3 years. Explain what these metrics mean and indicate whether their loan default rates are improving or worsening."

Review AI Output:

Interpret AI Output:

NPA Analysis – Bajaj Finance

• Gross NPA: Increased from 0.85% in FY24 to 1.01% in FY26, showing a slight increase in loan defaults.

• Net NPA: Increased from 0.37% in FY24 to 0.44% in FY25, but improved to 0.41% in FY26.

• Overall: Asset quality has slightly weakened, but the level of NPAs remains low.

• Risk management: The improvement in Net NPA in FY26 indicates that the company has maintained adequate provisions against bad loans.

Conclusion:
Bajaj Finance’s loan defaults have increased slightly, but overall asset quality remains well controlled.

AI Comparison Analysis Compare your primary company (e.g., Bajaj Finance) with two major competitors (e.g., Shriram Finance and Cholamandalam).

AI Prompt: "Compare Bajaj Finance with two major competitors (Shriram Finance and Cholamandalam) over the last 3 years. Compare their Revenue, Operating Profit, Net Profit and EPS. Explain the comparison in simple language and give a final verdict on which company performed better financially and why."

Review the AI output:

Interpret the AI Output :

Financial Comparison – Bajaj Finance vs Competitors

Bajaj Finance performed strongly over FY24–FY26 compared with Shriram Finance and Cholamandalam.

Key findings:

1. Largest company – Bajaj Finance had the highest revenue and net profit among the three.

2. Strong growth – Its revenue and net profit increased consistently over the three years.

3. Higher total profit – FY26 net profit was ₹19,017 crore, much higher than Shriram Finance (₹9,998 crore) and Cholamandalam (₹5,233 crore).

4. EPS – Shriram Finance and Cholamandalam had higher EPS, but this does not necessarily mean they are more profitable; EPS also depends on the number of shares.

5. Diversified business – Bajaj Finance operates across many lending segments, reducing dependence on one particular type of loan.

Verdict

Bajaj Finance is the strongest overall performer among the three based on revenue, net profit, consistent growth and business diversification.

Note for students: When comparing companies, don't decide the winner using only EPS. Look at revenue growth, profit growth, profitability, asset quality and other financial ratios together

Similarly, you can analyse the company's Balance Sheet by following the exact same steps outlined above.

Data to Collect:

• Total Assets

• Total Liabilities

• Total Equity (Shareholders' Funds)

• Total Borrowings (Debt)

• Cash and Short-Term Investments

How to Analyse:

1. Navigate to the Financials tab on TradingView and select Balance Sheet.

2. Switch the view to Annual.

3. Extract the key metrics for the last 3 financial years.

4. Use an AI tool to interpret the trends and understand the company's financial health.