Bajaj Finance Shares Fall 5% DESPITE Strong Q4 Results!

      
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Bajaj Finance Shares Fall: Bajaj Finance’s shares fell 5.27% today after the results of the fourth quarter of FY 2024-25. The non-banking finance company (NBFC) ‘s shares fell by Rs 479 to close at Rs 8,613.50. The company’s profit rose 17% to Rs 4,480 crore in Q4FY25.

Let us tell you that Bajaj Finance announced three big gifts for shareholders on Tuesday. Even after this, the company’s shares have seen a sharp decline. The company announced bonus shares, dividends, and share distribution along with the quarterly results on Tuesday.

Bajaj Finance Shares Fall
Bajaj Finance Shares Fall

Bajaj Finance Shares Fall: The Company will Pay a Dividend

Bajaj Finance has recommended bonus shares in the ratio of 4:1. That is, the company will give 4 bonus shares to investors for every share. The company has also announced a total dividend of Rs 56. The company has announced a final dividend of Rs 44 and a special dividend of Rs 12 per share.

Apart from this, Bajaj Finance has also announced a stock split in the ratio of 1:2. The company will divide its shares into two parts. Bajaj Finance had earlier given bonus shares to its investors in the year 2016.

Bajaj finance Q4 Result

Bajaj Finance’s profit has increased by 19 per cent year-on-year to Rs 4546 crore in the March 2025 quarter. The company’s net interest income (NII) has increased by 22 percent year-on-year to Rs 9807 crore in the January-March 2025 quarter. The company’s net interest income was Rs 8013 crore in the same period a year ago.

The company’s consolidated assets under management (AUM) stood at Rs 4.16 lakh crore as of the March 2025 quarter, a growth of 26 % over a year ago.

Why Bajaj Finance Shares Fall

  • Worse than expected profit growth: The company’s profit has increased by 17% on an annual basis. But this increase was less than the expectations of market analysts. This disappointed the investors.
  • Increase in Non-Performing Assets (NPAS): The company’s NPAS increased during the January-March quarter. This means that the company did not receive interest and loan repayment on the loan it gave. During this period, the company’s gross NPA fell by 1.12% to 0.96%.
  • High valuation and market expectations: Bajaj Finance stock was trading at ₹ 9,093 on 28 April. Its market capitalisation was ₹ 564,262.91 crore, and its P/E ratio was 38.38, well above the sector average of 30.79. This high valuation eliminates the margin of error and leads to correction in case of lower-than-expected profits.

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