Bajaj Finance Shares Recapture ₹1,000 Level As Highs Approach

Bajaj Finance shares (BAJFINANCE.NS) witnessed a resurgence, gaining almost 2% today and inching closer to previous highs. The stock's return above the ₹1,000 mark underscores strong year-to-date (YTD) momentum, with gains of 47.87%.

The company's stock performance in 2025 has been underpinned by robust financial results, strategic partnerships, and positive market sentiment. The shares are now trading at levels that reflect the significant gains made throughout the year, driven by a series of positive catalysts.

A key driver of market confidence was the reported 18% year-on-year increase in net profit for Q3 FY25, which ended December 31, 2024. This surge in profitability was fueled by substantial growth in loan disbursals, leading to a 6% jump in the company's stock price to record levels at the time. The positive earnings prompted numerous analysts to raise their price targets, further solidifying the bullish outlook.

Adding to the positive momentum, Bajaj Finance announced a significant expansion of its customer base, reaching 101.82 million as of March 31, 2025, up from 83.64 million the previous year. This growth demonstrates the company's effective customer acquisition and retention strategies, bolstering its financial strength and market position.

Strategic Alliances and Leadership

Strategic alliances have also played a crucial role in Bajaj Finance's success. The partnership with Bharti Airtel, announced in January, allows Bajaj Finance to offer its financial products through Airtel's extensive digital platforms and physical stores. This collaboration grants access to Airtel's vast customer base of 370 million, significantly expanding Bajaj Finance's market reach and potential for loan disbursals.

Leadership transitions within the company have been strategically managed to ensure continuity and drive future growth. The elevation of Rajeev Jain to Vice Chairman and Anup Kumar Saha to Managing Director, effective April 1st, signals a commitment to strong leadership and strategic direction.

Further enhancing shareholder value, Bajaj Finance declared a final dividend of ₹44 per share and announced a stock split in the ratio of 1:2, along with a bonus issue in the ratio of 4:1. These corporate actions are designed to improve stock liquidity and attract a broader range of backers.

Brokerage firms have largely maintained a positive outlook on Bajaj Finance. Jefferies, for instance, has maintained a ‘Buy' rating on the stock, citing strong earnings, stable asset quality, and effective leadership transitions. Jefferies set a target price of ₹9,270, reflecting confidence in the company's continued growth prospects. The stock's rally of 11% over two weeks in September 2025, nearing its record high, was attributed to expectations of higher credit growth following favorable GST Council decisions.

Navigating Challenges and Future Outlook

Despite the overwhelmingly positive performance, Bajaj Finance has faced some challenges. The company's shares fell over 6% in July, despite reporting a 22% year-on-year increase in net profit to ₹4,765 crore for Q1 FY26. This decline was attributed to concerns over asset quality pressures in certain segments, highlighting the market's sensitivity to potential risks. Earlier, in April 2024, the company's shares dropped 7% following forecasts of slower asset growth and weaker margins.

Looking ahead, the market will be closely watching how Bajaj Finance navigates these challenges while capitalizing on its strengths. The company's strategic initiatives, strong financial performance, and positive analyst endorsements continue to support market confidence.

The ability to maintain asset quality and sustain growth momentum will be crucial for the stock to maintain its upward trajectory. The current price action suggests that the markets are betting on Bajaj Finance's long-term growth story, but vigilance regarding potential risks remains essential.