Here’s Why We Think Bajaj Finance (NSE:BAJFINANCE) Is Well Worth Watching

It’s common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

If this kind of company isn’t your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Bajaj Finance (NSE:BAJFINANCE). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Bajaj Finance with the means to add long-term value to shareholders.

Check out our latest analysis for Bajaj Finance

How Quickly Is Bajaj Finance Increasing Earnings Per Share?

If you believe that markets are even vaguely efficient, then over the long term you’d expect a company’s share price to follow its earnings per share (EPS) outcomes. That means EPS growth is considered a real positive by most successful long-term investors. It certainly is nice to see that Bajaj Finance has managed to grow EPS by 24% per year over three years. If the company can sustain that sort of growth, we’d expect shareholders to come away satisfied.

Careful consideration of revenue growth and earnings before…

Read more…