Bajaj Finance’s stock experienced a slight dip on Monday, falling over 1% as anticipation builds for its upcoming Q4 financial results, set to be unveiled tomorrow. The shares touched an intraday low of ₹9,003.60 on the BSE, reflecting cautious investor sentiment ahead of the key announcement.
Anticipated Financial Performance
On April 29, Bajaj Finance will reveal its financial outcomes for the fourth quarter of FY26. Alongside these results, the board is expected to discuss a special interim dividend for FY25, consider a stock split, and propose the issuance of bonus shares. Experts predict a strong quarter for the company, driven by robust loan growth across various segments, stable credit costs, and improved asset quality.
Key Projections for Q4 Results
Analysts are forecasting a net profit of ₹4,518 crore for Bajaj Finance in the quarter ending March 2025. This represents an impressive 18.1% increase from ₹3,825 crore during the same period last year. The company’s net interest income (NII) is also expected to rise by 23%, reaching ₹9,814 crore compared to ₹8,013 crore in the previous year. Such growth is attributed to a significant expansion of the loan portfolio, as noted by Axis Securities.
- Projected Net Profit: ₹4,518 crore
- Expected NII Growth: 23% YoY
- Past Year NII: ₹8,013 crore
Asset Management and Margins
In the January-March 2025 quarter, Bajaj Finance reported a 26% YoY increase in assets under management (AUM), along with a 5% QoQ rise. However, margins may face slight pressure due to increasing funding costs and competitive market conditions. Motilal Oswal Financial Services estimates a minor contraction in margins, projecting them to drop by 5 basis points to 9.65% this quarter. Conversely, credit costs are anticipated to decline by 5 basis points QoQ, bringing them down to 2.05%.
Key Insights and Market Trends
Investors will be keen to hear management’s insights on asset quality and credit trends during the Q4 earnings call. The company’s guidance regarding the net interest margin (NIM) trajectory will also be crucial.
Potential Shareholder Returns
In its forthcoming meeting, Bajaj Finance’s board will evaluate proposals for a special interim dividend for the fiscal year 2024-25. Additionally, discussions around a sub-division of existing equity shares, with a face value of ₹2, are on the agenda. The board is also considering issuing bonus shares to enhance shareholder value.
Should You Invest in Bajaj Finance?
Bajaj Finance shares have shown remarkable growth, climbing 21% year-to-date and gaining 30% over the past year. Notably, the stock has delivered a stunning 113% return over the last five years. Motilal Oswal Financial Services maintains a ‘Neutral’ rating on the stock, targeting a price of ₹9,000.
From a technical perspective, the recent trading patterns indicate a bearish trend, with the stock forming a shooting star pattern, prompting profit-taking. Currently, Bajaj Finance shares are trading at ₹9,094.80, down 0.18% on the BSE as of 3:10 PM. Analysts like Anshul Jain, Head of Research at Lakshmishree Investments, suggest that any breach below ₹9,020 could trigger further selling pressure, potentially testing support at ₹8,700. Despite this, the overall trend remains bullish, as long-term targets hover around ₹12,000.
In conclusion, with strong fundamentals and positive growth indicators, Bajaj Finance continues to be a significant player in the financial sector. Keep an eye on the upcoming earnings report for further insights into its performance and strategic direction.
