Bajaj Finance rises over 5% to hit record high, strong buying on hope of consumption push, RBI rate cut

The anticipated rate cut in February could add to the consumption boost provided in Budget through the personal income tax relief.

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26 Aug, 2025 12:21

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Shares of Bajaj Finance hit a fresh high on February 3 with strong volumes, rising by more than 5% in trade and over 21% so far this year on continued buying interest after strong December quarter results last week.

There is a strong anticipation of a rate cut by the Reserve Bank after the upcoming MPC meeting later this week, with a Moneycontrol Poll projecting the possibility of a 25 bps cut. Economists and market experts suggested India could see its benchmark rate fall by 50-75 bps in 2025. The anticipated rate cut in February could add to the consumption boost provided in Budget through the personal income tax relief.

Select largecaps are finding greater market interests in 2025, after some of them, including Bajaj Finance have had a quiet 2024.

Read More: Valuations, earnings could see large-caps lead charge in 2025: Canara Robeco MF

The NBFC has lowered its share of customers having more than three live unsecured loans significantly, bringing them at par with pre-Covid levels. The management also sees its credit cost continue to fall below 2% to going forward in FY26. The lender said it will continue to prioritise asset quality over growth, and is confident of maintaining GNPA and NNPA in a steady range of 1.2-1.4% and 0.4-0.5% respectively.

Bajaj Finance reported an 18% on-year growth in its consolidated net profit for Q3FY25 to Rs 4,308 crore, topping expectations. The strong performance was driven by a significant rise in assets under management (AUM).

Axis Securities had on January 30 maintained its Buy on the stock, with a target of Rs 9050 per share on the back strong results and growth potential. Axis Securities said it sees some recovery in collections, and the pace of delinquencies to moderate in the segments that have some some pain, and the credit costs should taper gradually.

Motilal Oswal has reiterate its Neutral rating with a target of Rs 8,300 per share. The NBFC now has a market capitalization of over Rs 5.2 lakh crore.

Bajaj Finance has announced a 15-month transition plan for the senior leadership, and the Board is expected to oversee the transition by 4QFY25. Rajeev Jain, current MD's tenure ends in March, however, he intends to remain with the NBFC and be actively involved in developing the strategic vision, subject to Board's decision.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​​