The share price of Bajaj Finance saw a sharp drop of nearly 6% during early trading today, hitting a low of Rs 8,556 per share. This downturn comes despite the company posting a 19% YoY rise in net profit in Q4FY25. According to the brokerage firm Jefferies report, the company’s revised growth outlook under its new leadership is a key highlight in focus.
So, what is behind this unexpected slump of the stock price of the company and what are the series of announcements made by the company in its q4 result? Let’s take a closer look at the stock performance, analyst outlook and other key highlights.
Bajaj Finance stock performance: A mixed bag
The share decline of the company today may raise concerns. However, Bajaj Finance’s stock has performed relatively well over a longer time horizon. Over the past one month, the Bajaj Finance share price has remained almost flat, dipping just 0.11%. But zooming out, in the past six months, it has surged by 26%, and over the last year, the stock price has increased by 25%.
The stock had touched a 52-week high of Rs 9,660 and its 52-week low is Rs 6,375.70.
Analysts weigh in
Macquarie on Bajaj Finance: Remains cautious
Although the company posted strong Q4 results, the brokerage firm, Macquarie remains cautious about Bajaj Finance’s future growth. The brokerage has maintained an Underperform rating on the stock, with a target price of Rs 6,290, well below its current price.
As per the brokerage, while the Q4 profit was in line with expectations, the higher provisions and lower taxes offset the positive results.
Jefferies on Bajaj Finance: Maintains a ‘Buy’ call
Another brokerage firm Jefferies has maintained a Buy rating on Bajaj Finance following the company’s Q4 FY25 results. However, the company revised its near-term growth forecast to 24-25% YoY for FY26, down from the earlier target of 25-27%.
The brokerage in its report pointed of the strong 26% YoY AUM growth, with urban personal loans and SME loans contributing to the positive trend, but it also noted of the 2W/3W loans saw a 12% YoY decline due to Bajaj Finance exiting its exclusive financing arrangement with Bajaj Auto. The brokerage also noted a moderation in core credit costs, which decreased to sub-2% of average AUM in Q4, a positive sign of improved asset quality.
Furthermore, the brokerage house noted, “Mr. Saha is aiming to correct credit quality further and moderate growth to ensure that slip-ups on asset quality, as seen in FY25, do not recur.” Despite trimming its earnings estimates by 2% for FY26-27, the brokerage remains optimistic, forecasting 25% AUM growth over FY25-28 and 24% earnings CAGR.
The brokerage has revised its price target to Rs 10,440 from Rs 9,270 based on a 4.9x P/B multiple for June 2027, and continues to recommend a Buy rating.
Bajaj Finance Q4FY25 highlights
Bajaj Finance posted a net profit of Rs 4,546 crore for the March 2025 quarter, a 19% increase from the same quarter last year. This growth is well compared to Rs 3,824.53 crore in Q4 of the previous year.
Special dividend and final dividend
For shareholders, Bajaj Finance declared two major dividends. A special interim dividend of Rs 12 per share (600% of face value) to be credited by May 2025. Similarly, a final dividend of Rs 44 per share (2200% of face value), expected to be credited in July 2025.
Stock split announcement
The company also declared a 1:2 stock split, meaning that each Rs 2 share will be split into two Rs 1 shares.
Bonus shares
Another highlight was the announcement of bonus shares in a 4:1 ratio. For every share held, investors will receive four bonus shares.
