Bajaj Finance Bonus Stock Split: Here’s a comprehensive overview of Bajaj Finance Ltd’s upcoming bonus issue, its current business position, and future growth prospects:
🎯 1. Upcoming Bonus Issue & Stock Split
Bajaj Finance Bonus Stock Split:
- Record Date: The Board of Bajaj Finance approved a 4:1 bonus issue (four bonus shares for every one share held) and a 1:2 stock split on April 29, 2025. The record date for corporate actions is set as June 16, 2025
- Stock Split Details: Each existing equity share (face value ₹2) will be split into two shares of ₹1 each, effectively doubling the number of shares held
- Bonus Issue Details: For every share held as of the record date, shareholders will receive four additional shares—a 4:1 ratio bonus issue, making it the first bonus issue in nearly nine years (last issued in September 2016 at 1:1)
- Purpose: These moves aim to enhance stock liquidity, improve affordability for retail investors, and send a strong signal of robust financial health and confidence
2. Q4 FY25 Performance & Dividend
- Net Profit Growth: Bajaj Finance reported a strong 19% year‑on‑year increase in Q4 FY25 net profit, reaching ₹4,546 crore. Net interest income surged 22% to ₹9,807 crore
- Dividends: The company declared a total dividend of ₹56 per share—₹44 final dividend and ₹12 special interim dividend. The ex-dividend date was May 30, 2025
3. Current Business Snapshot
a. Market Leadership
- Bajaj Finance is India’s largest NBFC, with a market capitalization exceeding ₹5.7 lakh crore (as of April 2025) It boasts a diversified portfolio—personal loans, consumer durables, credit cards, SME/business lending, and wealth management
- It serves over 100 million customers, with AUM reaching around ₹4.17 lakh crore, reflecting a 26% YoY growth .
b. Financial Metrics
- FY24 consolidated revenue stood at ₹54,983 crore with a net profit of ₹14,451 crore
- Recent quarter delivered 16–20% revenue and earnings growth consistently. Outstanding profitability with ~45% EBIT margin, ROE ~20%, and ROA ~4.8%.
- Futures forecasts: 20–21% earnings growth, revenue growth ~20%, with ROE ~21%
c. Asset Quality & Analyst Outlook
- Rising credit costs have stabilized, and asset quality has firmed up after multi-quarter fluctuations
- Strong Q3 FY25 results led to stock rally, setting new all-time highs and encouraging analyst upgrades .
4. Future Growth Drivers
- Digital & Technology: Continued investments in fintech, digital lending platforms, automation, AI, and digital customer acquisition underpin efficiency and deeper market penetration
- Product Diversification: With 26 product lines and 51 variants—ranging from consumer finance to SME and small-ticket commercial loans, wealth management—Bajaj Finance has ample cross-sell opportunities
- Financial Inclusion & Climate Finance:
- Outreach into semi-urban and rural markets is driving credit adoption.
- In November 2024, it partnered with IFC to raise $400 million for climate finance—targeting electric vehicles, energy-efficient goods, and women-entrepreneur financing
- Insurance Control & Consolidation:
- Parent Bajaj Finserv is acquiring 100% stake in insurance JVs (Bajaj Allianz), post-Allianz exit, without impacting capital for growth—the divorced stake to bolster standalone expansion
5. Risks & Valuation Outlook
- Risks:
- Renewed credit cost pressure due to unsecured lending exposure.
- Slower economic growth or tighter regulatory lending norms.
- Rising competitive challenges from banks and fintech disruptors.
- Valuation:
- Currently trades at a premium: P/E ~39×, P/B ~7.4×
- Price targets from analysts vary: short-term ₹7,300–8,500; medium-term stretch ₹11,000–12,000 by end of 2025, and ₹12,800–14,400 by 2028–29 .
📈 Conclusion
Bajaj Finance Bonus Stock Split:
Bajaj Finance’s upcoming 4:1 bonus issue and 1:2 stock split—with record date on June 16, 2025—demonstrate a strong commitment to rewarding shareholders, improving liquidity, and making shares more accessible. With robust Q4 FY25 financials, expanding digital reach, diversification across products, and strong market position, the company is well-poised for sustained long-term growth. Though valuations are rich, the combination of stable asset quality, strategic investments, and shareholder-friendly actions underpin a resilient outlook.
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.
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