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The Bajaj twins — Bajaj Finance Ltd. and Bajaj Finserv Ltd. — were among the top laggards on the Nifty 50 on April 30
Bajaj Finance, Bajaj Finserv shares fall
Bajaj Finance, Bajaj Finserv Shares: The Bajaj twins — Bajaj Finance Ltd. and Bajaj Finserv Ltd. — were among the top laggards on the Nifty 50 on April 30, falling sharply by around 6% following the release of their fourth-quarter earnings.
As of 9:43 am, shares of Bajaj Finance were trading at Rs 8,668, down 4.67%, while Bajaj Finserv slid 5.89% to Rs 1,945.10 on the NSE.
Bajaj Finance posted a mixed set of results for the March quarter of FY25, with net profit rising 17% year-on-year to Rs 4,480 crore, aided partly by a Rs 290 crore tax reversal. Revenue climbed 17% to Rs 18,457 crore from Rs 14,927 crore in Q4FY24. However, profit growth was dampened by elevated credit costs and one-time provisions, while net interest margin (NIM) slipped around 10 basis points sequentially to 9.65%. Despite this, management remains optimistic about FY26, expecting stable margins supported by a 10–15 bps drop in cost of borrowings, even as fee income declines due to the wind-down of the co-branded card business.
Bajaj Finserv, meanwhile, reported a 14% increase in consolidated net profit to Rs 2,417 crore, compared to Rs 2,119 crore a year ago.
Should You Buy, Sell, Or Hold?
Brokerages had mixed reactions to the results. Emkay Global maintained an ‘add’ rating on Bajaj Finance with a Rs 9,200 target, citing strong AUM growth, customer acquisition, and operational efficiencies, though noting pressure from higher credit costs. Jefferies and HSBC retained their ‘buy’ calls with targets of Rs 10,440 and Rs 10,800, respectively, banking on consistent growth and earnings momentum between FY26–28. Conversely, Citi downgraded the stock to ‘Neutral’ and cut its target to Rs 9,830, citing valuation concerns and a core earnings miss due to elevated credit cost and lower NIMs. Motilal Oswal also held a ‘Neutral’ stance, noting a lack of immediate re-rating triggers.
Market analysts suggest the stock’s decline was triggered more by valuation concerns after a sharp rally over the past four months, with much of the optimism already factored in. Ajit Mishra of Religare Broking pointed to this as a reason for the recent correction.
| Brokerage | Rating | Target Price (Rs) | Key Highlights |
|---|---|---|---|
| Emkay Global | Add | 9,200 | Strong AUM growth, customer acquisition, and pre-provisioning profit; higher credit costs impacted bottom line. |
| Jefferies | Buy | 10,440 | Results in line; revised near-term expectations under new CEO; credible long-term outlook. |
| HSBC | Buy | 10,800 | Sees Bajaj Finance as an earnings inflection story through FY26–FY28; expects flat NIMs in FY26. |
| Motilal Oswal | Neutral | 10,000 | Valuations already rich; limited short-term catalysts for re-rating; maintains neutral stance. |
| Citi | Neutral | 9,830 (cut from 10,200) | Downgrade due to credit cost pressure, NIM contraction, and recent stock outperformance. |
Technical Outlook
On a technical note, Anshul Jain of Lakshmishree Investments sees Bajaj Finserv’s pullback as a low-volume retest of its breakout zone near Rs 1,900, calling it a potential buying opportunity with targets around Rs 2,200 in the near term.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
