Bajaj Finserv (BOM:532978) Beneish M-Score: -2.11 (As of Jul. 01, 2026)


BOM:532978 Bajaj Finserv Ltd BOM:532978
81 GF Score
Price ₹1,783.00
GF Value ₹2,398.59
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Bajaj Finserv Beneish M-Score?

Bajaj Finserv BOM:532978 +1.31% 81 Beneish M-Score is -2.11 as of Jul. 01, 2026. GuruFocus rates BOM:532978 with a GF Score™ of 81/100 and a GF Value™ of ₹2,398.59 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 86 Diversified Financial Services companies, Bajaj Finserv ranks worse than 72.09% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.11 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Bajaj Finserv's Beneish M-Score or its related term are showing as below:

BOM:532978' s Beneish M-Score Range Over the Past 10 Years
Min: -13.89   Med: -1.92   Max: -1.18
Current: -2.11

During the past 13 years, the highest Beneish M-Score of Bajaj Finserv was -1.18. The lowest was -13.89. And the median was -1.92.

BOM:532978
81GF Score
Bajaj Finserv Ltd BOM:532978
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bajaj Finserv Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Bajaj Finserv for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.7667+0.528 * 1+0.404 * 1.0014+0.892 * 1.1219+0.115 * 0.8838
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * 0.084238-0.327 * 1.2273
=-2.11

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹97,563 Mil.
Revenue was ₹1,278,972 Mil.
Gross Profit was ₹1,278,972 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹7,584,975 Mil.
Property, Plant and Equipment(Net PPE) was ₹46,139 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹12,914 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹3,613,782 Mil.
Net Income was ₹98,010 Mil.
Gross Profit was ₹12,082 Mil.
Cash Flow from Operations was ₹-553,014 Mil.
 Total Receivables was ₹113,416 Mil.
Revenue was ₹1,139,989 Mil.
Gross Profit was ₹1,139,989 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹6,522,316 Mil.
Property, Plant and Equipment(Net PPE) was ₹48,854 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹11,703 Mil.
Selling, General, & Admin. Expense(SGA) was ₹19,515 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹2,532,073 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(97562.8 / 1278971.9) / (113415.5 / 1139988.9)
=0.076282 / 0.099488
=0.7667

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1139988.9 / 1139988.9) / (1278971.9 / 1278971.9)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 46139.4) / 7584975.4) / (1 - (0 + 48853.6) / 6522316.1)
=0.993917 / 0.99251
=1.0014

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1278971.9 / 1139988.9
=1.1219

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(11703.2 / (11703.2 + 48853.6)) / (12913.6 / (12913.6 + 46139.4))
=0.19326 / 0.218678
=0.8838

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 1278971.9) / (19514.8 / 1139988.9)
=0 / 0.017118
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3613782.2 + 0) / 7584975.4) / ((2532073 + 0) / 6522316.1)
=0.47644 / 0.388217
=1.2273

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(98009.7 - 12082.2 - -553014.1) / 7584975.4
=0.084238

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Bajaj Finserv has a M-score of -2.11 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.11 mean?
Bajaj Finserv (BOM:532978) has a Beneish M-Score of -2.11 as of Jul. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bajaj Finserv and its competitors. According to the industry distribution chart, Bajaj Finserv ranks #62 out of 86 companies in the Diversified Financial Services industry, placing it in the top 72.1%.
Is Bajaj Finserv's Beneish M-Score too high?
Bajaj Finserv's current Beneish M-Score is -2.11. Based on the distribution chart, Bajaj Finserv ranks #62 out of 86 companies in the Diversified Financial Services industry, which is below the industry midpoint. Overall, Bajaj Finserv has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finserv's Beneish M-Score compare to VOYA and FRHC?
According to the Diversified Financial Services industry distribution chart, Bajaj Finserv ranks #62 out of 86 companies for Beneish M-Score. This places Bajaj Finserv in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Diversified Financial Services company?
A good Beneish M-Score depends on the Diversified Financial Services industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bajaj Finserv and its competitors. Bajaj Finserv's current Beneish M-Score is -2.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finserv stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finserv (BOM:532978) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,398.59, compared to a current price of ₹1,783.00 — trading 25.7% below its estimated fair value. The current Beneish M-Score is -2.11. Bajaj Finserv's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Bajaj Finserv (BOM:532978), the current Beneish M-Score is -2.11 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Bajaj Finserv (BOM:532978) Overvalued in 2026?

Based on GuruFocus' analysis, Bajaj Finserv stock appears to be undervalued. The current stock price of ₹1,783.00 is trading 25.7% below its estimated GF Value™ of ₹2,398.59. GuruFocus considers Bajaj Finserv to be Modestly Undervalued.

Key valuation signals for BOM:532978:

  • Beneish M-Score: -2.11
  • GF Value™: ₹2,398.59 vs. price of ₹1,783.00 (25.7% below fair value)
  • GF Score™: 81/100 with 4 warning signs

No single metric tells the full story. See the BOM:532978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Bajaj Finserv Business Description

Other Exchanges BAJAJFINSV:India
Address Off Pune-Ahmednagar Road, 6th Floor, Bajaj Finserv Corporate Office, Viman Nagar, Pune, MH, IND, 411014
Bajaj Finserv Ltd is a non-banking financial services company headquartered in India that engages in lending activities. It services six lending verticals: consumer, small and midsize enterprises, commercial, rural, deposits, and partnerships and services. Bajaj's consumer and rural lending consists of funding solutions for consumer durables, such as vehicles and furniture, to personal loans. The commercial lending activities consist of funding for plant and machinery assets and term loans to SMEs. Its business segments include: Life Insurance, General Insurance, Windpower, Retail Finance, and Investment and Others. It derives maximum revenue from the Retail Finance segment. Geographically, the company derives all of its revenue from its operations in India.
81GF Score

Get the complete analysis for BOM:532978

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,783.00
Price
₹2,398.59
GF Value