Bajaj Finance, the largest NBFC stock on BSE and NSE, has turned ex-split and ex-bonus starting this week, with its share price adjusting from above Rs 9,300 levels to below Rs 920 mark as of June 18. Bajaj Finance is well-positioned to capture further growth if the lending environment continues to improve.
Bajaj Finance Share Price:
After market hours of June 18, Bajaj Finance stock ended at Rs 918 on NSE, down by 0.5% with a market cap of Rs 5,70,471.50 crore. The stock is struggling at around Rs 930. If you are wondering why Bajaj Finance which traded above Rs 9300 levels last week is now below Rs 920 is due to its adjustment to the 4:1 bonus issue and 1:2 stock sub-division.
Last week, on June 13, Bajaj Finance stock stood at Rs 9,340 apiece level. From June 16, the stocks have factored in their bonus issue and split ratios.
Bajaj Finance Bonus Issue:
Backed by Bajaj Finserv, this NBFC has carried a bonus issue in the ratio of 4:1, which means that, it issued four new bonus shares at a face value of Re 1 each, for every 1 existing share for the face value of Re 1 each. The bonus issue was implemented using free reserves which are currently at Rs 4,97,14,29,216.
This was the first bonus issue in 9 years. The last time, Bajaj Finance turned ex-date for bonus issue was on September 8, 2016, for a 1:1 ratio.
Bajaj Finance Stock Split:
Additionally, the behemoth also split its shares in the ratio of 1:2, which meant the sub-division of 1 (one) equity share of the face value of Rs. 2 each fully paid up into 2 (two) equity shares of the face value of Re. 1 each fully paid-up.
This was Bajaj Finance’s second stock split. The first sub-division was on September 10, 2016, in the ratio of 1:5, where the face value of Rs 10 was trimmed to Rs 2.
For both the stock split and bonus issue, the record date and ex-date were fixed on June 16, 2025.
Bajaj Finance Outlook:
According to Capitalmind report, the last 1.5-2 years weren’t kind to lenders. A rapid rate hike cycle-taking repo from 4% to 6.5% between May 2022 and Feb 2023-meant borrowing costs surged, EMIs ballooned, and discretionary credit demand (like personal loans and consumer durables) took a hit.
Over the past five years, BFL’s loan book has grown at a 10% CAGR, expanding from 27 million to 43 million loans, while its customer franchise has more than doubled from 43 million to 102 million, as per the report. Its AUM has also seen strong growth, rising at a 23% CAGR to reach 4.17 lakh crore by the end of FY25. Net Total Income has kept pace with AUM growth, while PAT has clocked a 26% CAGR over the same period.
Bajaj Finance’s management is aiming for a customer franchise of 190-210 million by FY29 while focusing to scale its cross-sell franchise to 115-225 million over the same period.
Bajaj Finance follows a 14-year-old strategic process called the Long Range Strategy (LRS), a five-year rolling plan with 12-24 month execution roadmaps. Through this, the company identifies emerging megatrends to drive its future growth. Adding Capitalmind report said, as part of its LRS 2025-29, BFL plans to work on 28 megatrends in total, with three newly identified: Green Finance, Multi-Cloud, and Zero Trust.
That being said, Capitalmind’s report said, “With that, BFL appears well-positioned to capture further growth if the lending environment continues to improve, as discussed earlier. While the company has always been recognized as a high-quality franchise, the broader lending sector has faced its share of challenges over the past couple of years.”
“Now, with better visibility on interest rates, lower inflation, and reviving consumption trends, the backdrop seems more favorable. In terms of valuation, BFL is currently trading at a TTM P/E of around 33x, which is fairly in line with industry averages, neither overly expensive nor particularly cheap, but reasonable considering its historical track record and growth profile,” it said.
About Bajaj Finance:
Bajaj Finance Ltd. (‘BFL’, ‘Bajaj Finance’, or ‘the Company’), a subsidiary of Bajaj Finserv Ltd., is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with a significant presence in both urban and rural India.