Bajaj Finance shares focus as NBFC announce record date for stock split, bonus

Shares of Bajaj Finance Ltd shall be in focus during the trading session on Monday after India's largest non-banking financial company (NBFC) announced its record date for 1:2 stock split and 4:1 bonus issue. The leading shadow lender has announced June 16, 2025, Monday as the record date for these corporate actions.

The company board of Bajaj Finance had approved the stock split and bonus issue on April 29, along with the results for the March 2025 quarter. Shares of Bajaj Finance have gained nearly 9 per cent since the announcement of the results. The stock settled at Rs 9373.05 on Friday, rising nearly 5 per cent. Its total market capitalization stood close to Rs 5.83 lakh crore.

Under the announced corporate action, each share of Bajaj Finance with a face value of Rs 2 each, shall be split/sub-divided into two equity shares of face value of Re 1 each. Subsequent to the split, every share investors hold as of the record date will receive an additional four shares as 4:1 bonus equity shares.

It means every share with a face value of Rs 2 each will result in 10 equity shares with a face value of Re 1. Besides this, Bajaj Finance had announced a final dividend of Rs 44 (2,200 per cent) for Q4FY25. Prior to this, Bajaj Finance had announced a stock split in 5:1 ratio and bonus issue in 1:1 ratio in September 2016. The stock has soared more than 700 per cent since then.

Bajaj Finance reported a 19 per cent year-on-year (YoY) surge in its consolidated net profit to Rs 4,545.6 crore, while net interest income (NII) came in at 9,807.1 crore for the March 2025 quarter. Its assets under management (AUM) grew by 26 per cent YoY, reaching Rs 4.17 lakh crore as of 31 March 2025.

Axis Securities expects Bajaj Finance to deliver a strong AUM, NII and earnings growth of 25 per cent, 26 per cent and 25 per cent CAGR over the medium term, respectively, driven by steady-to-marginally improving NIMs, operating leverage driving cost ratio improvement, and positive outlook on asset quality, keeping credit costs under control.

"We expect Bajaj Finance to deliver a RoA and RoE of 4.5-4.6 per cent and 19-21 per cent, broadly in-line with the management’s long term guidance. We recommend a 'buy' on the stock with a target price of Rs 10,225 per share, implying an upside 10 per cent," it added.

BNP Paribas said that NBFCs valuations appear fuller, in a historical context, including NBFC top pick - Bajaj Finance, the relative attractiveness of banking sector opportunities becomes clear. It has increased its target price of Bajaj Finance to Rs 11,120 but maintained its 'neutral' stance.