Bajaj Finance Shares Surge Amid Positive Market Sentiment

Notable Gains on the Stock Exchange

Bajaj Finance’s share price experienced a notable increase today, rising by 5.8% on the Bombay Stock Exchange (BSE) to reach an intraday high of Rs 7,339.90 per share. This surge made it the top gainer on the Sensex, reflecting strong investor interest. Alongside Bajaj Finance, shares of Bajaj Finserv also demonstrated impressive performance, climbing 8.9% to hit an intraday high of Rs 1,717.45.

The broader market mirrored this positive sentiment, with the Sensex gaining over 1,000 points, trading at approximately 79,520 as of 1:00 PM.

Analysts Maintain Bullish Outlook

Recent reports highlight that global brokerage firm Citi has an optimistic view on Bajaj Finance shares and has initiated a ’90-day catalyst watch’ on the stock. Citi is believed to have reiterated a ‘Buy’ rating for Bajaj Finance, setting a target price of Rs 8,150. The firm anticipates a marginal increase in credit costs for the third quarter, projecting them to range between 2.2% and 2.25%. Additionally, asset under management (AUM) is expected to grow by 6% quarter-on-quarter and 7% year-on-year, buoyed by demand in mortgages, sales financing, securities lending, and new ventures. Citi also predicts a slight uptick in net interest margin (NIM) by 3-5 basis points.

Company Overview and Historical Performance

Bajaj Finance is one of India’s leading non-banking financial companies (NBFCs), specializing in lending and deposit acceptance. The company boasts a diverse lending portfolio encompassing retail, small and medium enterprises (SMEs), and commercial clients.

Despite the recent gains, data shows that Bajaj Finance shares have appreciated only 4% over the past month, contrasting with a 1% decline in the Sensex index. The stock has shown remarkable resilience, having reached a 52-week high of Rs 7,830 per share on January 9, 2024, and an all-time high of Rs 8,190 on October 6, 2023. Currently, Bajaj Finance’s market capitalization stands at Rs 4.4 trillion.

Financial Performance Insights

Bajaj Finance’s financial results underscore its growth trajectory. Analysts predict that earnings growth will gradually align with asset growth, driven by a decrease in credit costs and stability in NIMs looking ahead to fiscal year 2026, especially with an improved outlook for the second half of fiscal year 2025.

Mirae Asset Sharehan analysts maintain a ‘Buy’ rating on Bajaj Finance shares following the release of the second quarter results, along with a revised price target of Rs 9,500. According to the data, Bajaj Finance’s net profit grew by 13% year-over-year and 2.8% quarter-over-quarter, reaching Rs 4,013 crore. Moreover, the AUM surged by 28.8% year-over-year and 5.6%, amounting to Rs 373,924 crore. The net interest income also saw significant growth, surging 28% year-over-year to Rs 14,987 crore.

Conclusion

The strong performance of Bajaj Finance shares today, coupled with optimistic forecasts from analysts, reflects a positive outlook for the company and the broader financial markets. As stakeholders continue to monitor its developments, Bajaj Finance remains a key player in India’s financial landscape.