OnEMI Vs Bajaj Finance Vs Chola Fin Vs HDB Financial Vs SBI Cards

In a credit-hungry, rising financial system, OnEMI Technology transitioned from a branch-based lender to a tech-driven digital loans supplier. While legacy gamers like Bajaj Finance and Chola Fin have constructed enterprise over many years, OnEMI is trying to redefine effectivity within the section. The peer benchmarking of OnEMI vs Bajaj Finance vs Chola Fin vs HDB Financial will strip away the advertising and marketing jargon and offer you audited financials, operational KPIs, and valuation benchmarks as a way to take an knowledgeable funding choice.

OnEMI Technology Peer Comparison: Operational Benchmarking

While conventional gamers concentrate on high-value asset-backed loans (Vehicle/Home), OnEMI operates within the high-frequency, small-ticket digital lending area.

OnEMI vs Bajaj Finance vs Chola Fin vs HDB Financial (As of 9M FY 2026)

OnEMI’s 56.92% AUM progress is the best within the group. Investors ought to notice that OnEMI is a high-volume participant, whereas legacy gamers like Bajaj and Chola Fin are low-volume however high-ticket-size gamers. This technique gives a superb high quality of mortgage e-book.

Read Also: OnEMI Technology IPO Review

OnEMI Technology Peer Comparison Analysis: Efficiency, Profitability & Asset Quality

OnEMI’s ROA of 8.48% is considerably increased than the business benchmark set by Bajaj Finance (3.10%). This is a results of the high-interest yields from with small-ticket unsecured lending.

OnEMI’s Net Margin is 12.77%, which lags behind Bajaj Finance (19.35%) and Cholamandalam (16.80%). Despite having a superior ROA (8.48%)—their means to transform that into last internet revenue is weaker than the giants. The excessive operational prices are consuming away excessive yields they generate from debtors, making their “Final Profitability” much less environment friendly than conventional friends.

OnEMI reviews a Cost-to-Income ratio of 55.66%, which is considerably increased than business benchmarks like Bajaj Finance (33.70%) and Cholamandalam (38.80%). This signifies that for each rupee of earnings generated, OnEMI spends practically 56% on operations, expertise, and buyer acquisition. While widespread for rising fintechs, it means that the corporate has but to attain the “Operating Leverage” that permits legacy gamers to extend earnings to the underside line.

Asset Quality

In unsecured lending, the largest concern for an investor is the rise in Non-Performing Assets (NPAs). Here, we analyze if the corporate has sufficient “buffer” to resist a credit score cycle.

OnEMI’s Gross NPA (GNPA) stands at 2.90%, practically double that of Bajaj Finance (1.56%). While the Net NPA (0.38%) appears clear as a consequence of aggressive provisioning, the excessive GNPA reveals {that a} bigger proportion of debtors are defaulting on the supply. This is a attribute threat of small-ticket, unsecured digital lending the place the “intent to pay” is extra risky in comparison with secured asset-backed loans.

OnEMI operates within the unsecured digital lending area, whereas friends like Chola Fin and HDB Financial have vital publicity to secured asset-backed loans (Vehicles, Home, Business property).

In the occasion of an financial downturn, unsecured loans are the primary to default. Unlike Chola or HDB, OnEMI doesn’t have bodily collateral to repossess and get well losses. This makes their 2.90% GNPA way more “sensitive” to market shocks than the NPAs of a secured lender.

Is OnEMI Technology IPO Fairly Priced?

Listed friends like Bajaj Finance, Chola Fin, and SBI Cards commerce at a mean P/E of 26x and a P/B of 4.0x. OnEMI is coming into the market at a P/E of ~13.37x and a P/B of 0.91x. Generally, fintechs command a premium over conventional NBFCs as a consequence of their scalability.

Final Words

In abstract, OnEMI is a High-Yield, Low-Leverage play within the section, coming into the market at a reduced valuation in comparison with its friends. However, this aggressive progress comes with notable constraints. The firm’s unsecured mortgage portfolio carries the next inherent threat. While the established gamers supply the steadiness of secured property.

Investors should weigh this enticing entry valuation towards the vulnerabilities of unsecured lending and excessive working overheads. Please notice {that a} peer comparability isn’t the only real benchmark to discover a good IPO. Many wealth creators might look unattractive or dangerous at an preliminary stage, but when an organization has good fundamentals and successfully manages its asset high quality, it will definitely grows.

Disclaimer: OnEMI Technology peer comparability evaluation relies on monetary information offered within the RHP for the intervals ending 31 March 2025 and 31 December 2025. This isn’t an funding recommendation please do thorough analysis earlier than funding.

Rajat Bhati has a robust technical background and 5 years of expertise within the inventory market. He focuses on fairness analysis, technical evaluation, IPO valuations, and threat administration, serving to buyers make clearer, data-backed choices. Today, he works full-time to teach folks concerning the alternatives in IPO market.