Bajaj Finance stock rallies 4% to hit new 52-week high; stock rises 10% in 2 sessions

Shares of Bajaj Finance rose more than 4 per cent during the trading session on Monday to hit new 52-week high as the leading NBFC announced June 16, 2025, Monday as its record date for the purpose of stock split in 1:2 ration and issue of bonus shares in 4:1 ratio.

Following the announcement of the record date, shares of Bajaj Finance Ltd rallied more than 4.4 per cent to Rs 9,785.90, hitting its all new high. The company commanded a total market capitulation close to Rs 6.1 lakh crore. The stock had settled at Rs 9,373.05 on Friday, rising another 5 per cent for the day. The stock has gained nearly 10 per cent in the last two sessions.

Each existing share with a face value of Rs 2 will be divided into two shares with a face value of Re 1. Additionally, shareholders will receive four bonus shares for every share held, effectively transforming one original share into ten new shares. The record date for these actions is set for June 16, 2025.

The upcoming stock split and bonus issue are expected to increase liquidity and potentially attract a broader investor base, enhancing the financial profile of Bajaj Finance. Market watchers and investors are keenly awaiting the execution of these corporate actions and their impact on the company's stock performance.

The company declared a final dividend of Rs 44 per share for the fourth quarter of FY25, underscoring its commitment to returning value to shareholders. Bajaj Finance had last conducted a similar stock split and bonus issuance in September 2016, which significantly boosted its stock value. Since then, the company's stock has risen by over 700 per cent.

BNP Paribas has adjusted its target price for Bajaj Finance to Rs 11,120, maintaining a 'neutral' stance despite recognising the fuller valuations of non-banking financial companies (NBFCs) in a historical context.

The board of Bajaj Finance had approved these corporate actions on April 29, 2025, alongside the release of the company's robust financial results for the March quarter. Following these announcements, Bajaj Finance's shares have gained nearly 9 per cent, closing at Rs 9373.05. Its market capitalisation is now approximately Rs 5.83 lakh crore.

In the March 2025 quarter, Bajaj Finance reported a 19 per cent increase in consolidated net profit, amounting to Rs 4,545.6 crore. The net interest income for this period reached Rs 9,807.1 crore. The company's assets under management (AUM) showed a significant year-on-year growth of 26 per cent, reaching Rs 4.17 lakh crore as of March 31, 2025.

Axis Securities has expressed optimism about Bajaj Finance's future performance, projecting strong growth in assets under management, net interest income, and earnings over the medium term. They expect Bajaj Finance to deliver a return on assets (RoA) and return on equity (RoE) of between 4.5 to 4.6 per cent and 19 to 21 per cent, respectively, aligning with the company's long-term guidance.