Bajaj Finance: Bonus, Split, & Solid Fundamentals – A Power Combo?

India’s top NBFC, Bajaj Finance

, has set June 16, 2025, as the record date for a 1:2 stock split and a 4:1 bonus issue. This means for every 1 share you hold, you’ll get 2 split shares and 4 bonus shares, multiplying your holding by 6 times. But corporate actions aside, how’s the business? Positives Net profit up 19% YoY in Q4FY25 (₹4,546 Cr), supported by robust loan growth and stable NPAs (GNPA at 0.96%). Revenue growing for 4 consecutive quarters, and EPS improving for the last 3 quarters. AUM grew 26% YoY to ₹4.16 lakh Cr, and total customer base crossed 10 crore. ROE of 17.2%, with rising profit margins. Promoter & FII shareholding increased, indicating strong confidence. Zero promoter pledge and improving book value. Stock trades just 2.99% below its 52-week high with strong momentum above 200 DMA. Outperformed NIFTY 50 in the past month. Concerns QoQ revenue dipped 2.27%, lowest in 3 years. Cash flow from operations has been declining for 2 years. Stock trades at 5.75x its book value, indicating premium valuation. DIIs reduced holdings last quarter. Currently below 20 & 50 DMA, showing short-term caution despite long-term strength. High debt levels, though well-managed historically. Market Reactions Stock surged 5% post the record date announcement and RBI’s surprise rate cut. Also saw Long Buildup in F&O and 38 large deals today — strong interest from big players. If you found this post helpful, do follow me for more such insights!