Bajaj Finance Shares Surge 6% as it Leads Gains on Sensex and Nifty
April 11, 2025 | New Delhi
In a significant market boost, Bajaj Finance shares surged by 6% today, making it the top gainer on both the Sensex and Nifty indices. As of noon trading, the stock reached an intraday high of Rs 7,339.9 per share, reflecting strong investor confidence.
Strong Market Performance
The sharp rise in Bajaj Finance shares comes against the backdrop of a broader market rally, with the Sensex climbing over 1,000 points to hit a level of 79,520 by 1:00 PM IST. Concurrently, shares of Bajaj Finserv, the financial services subsidiary of the Bajaj Group, also witnessed a notable increase, soaring by 9% to reach an intraday high of Rs 1,717.45 per share.
Positive Analyst Sentiment
A key factor contributing to this bullish trend is the recent affirmation from global brokerage firm Citi, which has reiterated its ‘Buy’ rating on Bajaj Finance stock. The firm opened a ’90-day catalyst watch’ for the stock, suggesting an optimistic short-term outlook. Citi has set a target price of Rs 8,150 for Bajaj Finance shares, highlighting their expectations of a slight increase in credit costs, projecting them to rise marginally to 2.2-2.25%. Additionally, they foresee significant growth in Assets Under Management (AUM) by 6% quarter-on-quarter (Q-o-Q) and 7% year-on-year (Y-o-Y), driven by improvements in mortgages, sales financing, securities lending, and several new business ventures.
Recent Financial Performance
Bajaj Finance, a leading non-bank financial company (NBFC) in India, has showcased robust financial performance in recent quarters. Analysts have noted that the company’s net profit increased by 13% Y-o-Y and by 2.8% Q-o-Q to Rs 4,013 crore. The company’s net interest income (NII) surged by 28% Y-o-Y to Rs 14,987 crore, reflecting strong revenue generation capabilities.
Additionally, analysts from Mirae Asset Sharehan have retained their ‘Buy’ rating on Bajaj Finance shares, setting a revised price target of Rs 9,500. They express confidence in the company’s sustainable earnings growth, anticipating that earnings growth will align with asset growth as credit costs stabilize.
Summary of Stock Performance
Bajaj Finance has seen a modest gain of 4% over the past month, contrasting against a 1% decline in the Sensex index during the same period. The stock recently achieved a 52-week high of Rs 7,830 on January 9, 2024, and reached an all-time peak of Rs 8,190 in October 2023. As of today, its market capitalization stands at approximately Rs 4.4 trillion.
Future Outlook
With favorable analyst ratings and a positive market environment, Bajaj Finance appears well-positioned for continued growth. Investors will be keen to observe how the company navigates the challenges of the financial landscape in the coming months, particularly as it aims to maintain its trajectory of healthy profit margins and revenue growth.
As the trading day progresses, market watchers will remain attentive to further developments in both Bajaj Finance and the broader market indices.
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