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Bajaj Finserv (BOM:532978) 5-Year RORE % : 14.58% (As of Dec. 2023)


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What is Bajaj Finserv 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Bajaj Finserv's 5-Year RORE % for the quarter that ended in Dec. 2023 was 14.58%.

The industry rank for Bajaj Finserv's 5-Year RORE % or its related term are showing as below:

BOM:532978's 5-Year RORE % is ranked better than
69.44% of 144 companies
in the Diversified Financial Services industry
Industry Median: -1.64 vs BOM:532978: 14.58

Bajaj Finserv 5-Year RORE % Historical Data

The historical data trend for Bajaj Finserv's 5-Year RORE % can be seen below:

* 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.

* Premium members only.

Bajaj Finserv 5-Year RORE % Chart

Bajaj Finserv Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.18 11.42 13.93 10.27 14.49

Bajaj Finserv Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.11 14.49 16.50 15.05 14.58

Competitive Comparison of Bajaj Finserv's 5-Year RORE %

For the Financial Conglomerates subindustry, Bajaj Finserv's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bajaj Finserv's 5-Year RORE % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Bajaj Finserv's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Bajaj Finserv's 5-Year RORE % falls into.



Bajaj Finserv 5-Year RORE % Calculation

Bajaj Finserv's 5-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 48.3-25.21 )/( 160.65-2.25 )
=23.09/158.4
=14.58 %

* 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.

In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2023 and 5-year before.


Bajaj Finserv  (BOM:532978) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Bajaj Finserv 5-Year RORE % Related Terms

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Bajaj Finserv (BOM:532978) Business Description

Traded in Other Exchanges
Address
Off Pune-Ahmednagar Road, 6th Floor, Bajaj Finserv Corporate Office, Viman Nagar, Pune, MH, IND, 411 014
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 mortgage lending activities consist of loans for residential and commercial properties and developer financing, among others. The company operates in India, with most of its revenue coming from Premium and other operating income from the insurance business.

Bajaj Finserv (BOM:532978) Headlines

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