Bajaj Finance stock analysis and expert insights in detail

Stock overview

Ticker	BAJFINANCE
Sector	NBFC
Market Cap	₹ 5,76,100 Cr
CMP (Current Market Price)	₹ 926
52-Week High/Low	₹ 979/642
Beta	1.2 (Moderate to high volatility)

About Bajaj Finance India Ltd.

Bajaj Finance, a subsidiary of Bajaj Finserv, is a diversified NBFC with deep roots in consumer durable financing, personal loans, SME lending, and rural credit. Over the years, it has transformed into a fintech-powered credit powerhouse, leveraging advanced analytics, robust underwriting, and a strong collection ecosystem.

Primary growth factors for Bajaj Finance India Ltd

1. Expanding Customer Base: Consistently adding 10–12 million new customers per year through cross-selling.
2. Rural Penetration: Aggressive expansion in Tier-2 and Tier-3 markets with affordable credit offerings.
3. Digital Transformation: 75%+ of loan origination is digital, ensuring scalability and low customer acquisition cost.
4. Product Diversification: Increasing contribution from lifestyle finance, personal loans, and SME segments.
5. Partnership Ecosystem: Collaborations with ecommerce giants, retailers, and fintechs to drive volume growth.

Q4 FY25 financial performance

Metric	Q4 FY 25	YoY Growth	QoQ Growth
Revenue	₹ 18,334 cr	23%	3%
Operating Expense	₹ 12,830 cr	31%	4%
Operating Income	₹ 5,504 cr	9%	-1%
PAT	₹ 4,479 cr	17%	5%

Bajaj Finance has delivered great results in Q4 FY 25 with both revenue and profit growth at a YoY and a QoQ level. 

Detailed competition analysis for Bajaj Finance India

Company	Market Cap	Revenue	P/E Multiple	RoCE
Bajaj Finance	₹ 5,76,100 cr	₹ 18,334 cr	34 x	11%
Cholamandalam	₹ 1,28,100 cr	₹ 7,045 cr	30 x	10%
Sriram Finance	₹ 1,26,700 cr	₹ 11,454 cr	15 x	11%
Muthoot Finance	₹ 1,05,600 cr	₹ 5,621 cr	20 x	13%

Bajaj Finance stands out with best-in-class NIMs, excellent asset quality, and high ROE, reflecting strong risk-adjusted profitability compared to peers.

Company valuation insights: Bajaj Finance India

As per the Discounted Cash Flow analysis:

It estimates the intrinsic value of Bajaj Finance shares based on expected future cash flows:

• Intrinsic Value Estimate: ₹1050 per share
• Upside Potential: 14%
• WACC: 11.5%
• Terminal Growth Rate: 3.5%

Major risk factors affecting Bajaj Finance India

• Regulatory Changes: Any tightening of NBFC norms could affect growth.
• Asset Quality Pressure: Unsecured lending growth could increase GNPA if economic slowdown deepens.
• Competition: Aggressive fintechs and private banks might dent margins.
• Valuation Concerns: Trading at a premium leaves limited margin for error

Technical analysis of Bajaj Finance India

• Resistance: ₹985
• Support: ₹ 880
• Momentum: Neutral
• RSI (Relative Strength Index): 40 (Neutral)
• 50-Day Moving Average: ₹910
• 200-Day Moving Average: ₹884
• MACD: Positive crossover; bullish divergence

Technically bullish with potential for breakout above ₹990

Bajaj Finance India stock recommendation by Ketan Mittal

Recommendation: Buy on dips / Long-term accumulate

Target Price: ₹980 (6-month horizon); ₹1050 (12-month horizon); 

Investment Horizon: 2–4 years for stable returns

Rationale

Recommend a Buy on Dips / Accumulate approach for Bajaj Finance.

Recommendation

Accumulate / Buy on Dips

Bajaj Finance’s proven execution, superior asset quality, digital-first growth model, and unmatched scalability in consumer lending make it a consistent compounder. Its diversified loan book and resilience even during past slowdowns provide comfort to investors.

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Conclusion

Bajaj Finance remains a high-quality franchise that continues to deliver — making it a worthy long-term compounder for investors, albeit with close monitoring of valuation risks.