The Indian stock market is a dynamic landscape, and companies like Bajaj Housing Finance and Bajaj Finance continue to capture investor attention with their strategic moves and robust financial performance. In March 2025, both companies made headlines with significant announcements, including bonus shares, stock splits, and dividends, despite a broader market correction. This article dives deep into the latest developments, financial fundamentals, and investment potential of Bajaj Housing Finance and its parent company, Bajaj Finance. With a focus on affordable housing, strong revenue growth, and shareholder rewards, these companies are poised for long-term success. Read on to explore their market performance, key metrics, and what lies ahead for investors.
Understanding Bajaj Housing Finance: A Market Leader in Housing Finance
Bajaj Housing Finance Limited, a flagship subsidiary of Bajaj Finance, has solidified its position as a leading non-deposit-taking housing finance company (HFC) in India. Registered with the National Housing Bank (NHB), the company focuses on affordable housing and lease rental discounting, catering to a growing demand for accessible homeownership. Its recent financial results and strategic decisions reflect a commitment to growth and shareholder value.
Stock Market Performance in March 2025
In March 2025, Bajaj Housing Finance experienced a notable decline, closing at approximately ₹117 per share, down 3.74% in a single trading session. This drop mirrored a broader market correction, with significant profit booking observed across small-cap and mid-cap stocks. Despite an intraday spike, heavy selling pressure dragged the stock lower, reflecting market volatility rather than a fundamental weakness in the company.
The stock has corrected significantly from its peak of ₹188, presenting a potential buying opportunity for long-term investors. With a market capitalization of around ₹154 crore, Bajaj Housing Finance remains a heavyweight in the housing finance sector. Its price-to-earnings (P/E) ratio stands at 47.15, higher than the industry average of 24.93, indicating a premium valuation driven by strong growth expectations. The price-to-book (P/B) ratio of 5.12 and a debt-to-equity ratio of 4.11 further highlight its leveraged yet growth-oriented business model.
Financial Fundamentals: A Snapshot of Growth
Bajaj Housing Finance’s financial performance in the March 2025 quarter underscores its resilience and growth trajectory. Key metrics include:
- Revenue Growth: The company reported a revenue of ₹2,508 crore in Q4 FY25, a 25.6% year-on-year (YoY) increase from ₹1,996.4 crore in Q4 FY24. This consistent quarterly revenue growth—from ₹1,997 crore in March 2024 to ₹2,508 crore in March 2025—demonstrates the company’s ability to scale its operations.
- Profit Surge: Net profit for Q4 FY25 soared 53.9% YoY to ₹586.7 crore, up from ₹381.3 crore in the same quarter of the previous year. This marks a steady upward trend, with profits rising from ₹483 crore in June 2024 to ₹587 crore in March 2025.
- Asset Quality: The company maintained a gross non-performing asset (GNPA) ratio of 0.29% and a net NPA ratio of 0.11% as of March 2025, reflecting robust risk management. These figures compare favorably to 0.27% and 0.10% in Q4 FY24, showcasing stability in a challenging economic environment.
- Cash Flow Improvement: While the net cash flow remained negative at ₹2 crore in March 2025, this is a significant improvement from a ₹30 crore deficit in March 2024. The company is on track to achieve positive cash flow, a positive signal for investors.
- Return on Equity (ROE): At 10.84%, the ROE reflects efficient use of shareholder capital, while an earnings per share (EPS) of ₹2.60 underscores profitability.
Strategic Focus on Affordable Housing
Bajaj Housing Finance has strategically pivoted toward affordable housing, a sector with immense growth potential in India. Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and rising demand for budget-friendly homes have positioned the company to capitalize on this trend. By expanding its loan portfolio in this segment, Bajaj Housing Finance is not only driving revenue growth but also contributing to social impact, making homeownership accessible to a broader demographic.
The company’s focus on lease rental discounting (LRD) and affordable housing is expected to bolster its net interest margins (NIMs) in the coming quarters. As the cost of funds stabilizes, Bajaj Housing Finance is well-positioned to enhance profitability and maintain its competitive edge in the housing finance market.
Dividend Announcement: Rewarding Shareholders
In a move that underscores its commitment to shareholders, Bajaj Housing Finance declared a dividend of ₹1 per share for FY25, payable by July 29, 2025. This modest yet significant payout reflects the company’s confidence in its financial stability and its intent to deliver consistent returns to investors. For those holding the stock, this dividend adds a layer of value, especially in a volatile market environment.
Bajaj Finance: A Triple Bonanza for Shareholders
Bajaj Finance, the parent company of Bajaj Housing Finance, is a titan in the non-banking financial company (NBFC) sector, offering a wide range of financial products, including consumer finance, personal loans, home loans, and commercial lending. In March 2025, the company announced a series of shareholder-friendly measures, including a stock split, bonus shares, and substantial dividends, earning it the moniker of a “triple bonanza.”
Stock Market Dynamics in March 2025
Bajaj Finance’s stock closed at ₹8,785 in March 2025, reflecting a 1.65% decline amid a broader market downturn. Despite this correction, the stock has delivered impressive returns, rallying over 35% year-to-date in 2025 and adding more than ₹1.5 lakh crore to investor wealth. The market capitalization stands at approximately ₹5.64 lakh crore, underscoring its dominance in the NBFC space.
The stock’s relative strength index (RSI) of 41.55 suggests waning momentum, but its long-term uptrend remains intact, characterized by higher highs and higher lows. Investors remain optimistic, buoyed by the company’s strong fundamentals and recent announcements.
Financial Performance: Robust Growth in Q4 FY25
Bajaj Finance’s Q4 FY25 results highlight its ability to thrive in a competitive market:
- Revenue Surge: Consolidated revenue reached ₹18,456.85 crore, a 23.65% YoY increase from ₹14,928.36 crore in Q4 FY24. For the full fiscal year, revenue grew by 14.04% to approximately ₹59,000 crore.
- Profit Growth: Net profit for Q4 FY25 rose 17% YoY to ₹4,480 crore, up from ₹3,824 crore in Q4 FY24. For FY25, consolidated net profit increased 16% to ₹16,779 crore.
- Earnings Per Share (EPS): Diluted EPS stood at ₹72.18, reflecting a 16.9% YoY growth, while the net profit margin improved by 2.7% to 46.72%.
- Asset Quality: The company maintained a gross NPA ratio of 0.96% and a net NPA ratio of 0.44%, with a capital adequacy ratio (CRAR) of 21.93%, indicating financial resilience.
These results include contributions from subsidiaries like Bajaj Housing Finance and Bajaj Financial Securities, showcasing the group’s diversified revenue streams.
Triple Bonanza: Bonus Shares, Stock Split, and Dividends
Bajaj Finance’s board approved a series of measures that have electrified the investor community:
- Bonus Shares (4:1 Ratio): For every one share held, shareholders will receive four additional shares, effectively increasing their holdings fivefold. For example, an investor with 100 shares will own 500 shares post-bonus. The company aims to complete this corporate action by June 27, 2025, with the record date to be announced separately.
- Stock Split (1:2 Ratio): Each equity share with a face value of ₹2 will be split into two shares with a face value of ₹1. Combined with the bonus issue, this means one share today will become ten shares post-split and bonus (two post-split shares plus eight bonus shares).
- Dividends: Bajaj Finance declared a total dividend of ₹56 per share for FY25, comprising:
- A special interim dividend of ₹12 per share (600% of face value), payable on or around May 26, 2025, with a record date of May 9, 2025. This dividend stems from exceptional gains from the sale of investments in Bajaj Housing Finance during its IPO in September 2024.
- A final dividend of ₹44 per share (2200% of face value), subject to shareholder approval, with a record date of May 30, 2025, and payment expected by July 28, 2025.
These measures significantly enhance shareholder value, making Bajaj Finance an attractive option for both short-term gains and long-term wealth creation. The bonus and split are designed to improve liquidity and make the stock more accessible to retail investors, while the hefty dividend underscores the company’s strong cash flow generation.
Shareholding Patterns: Insights into Ownership
Understanding the shareholding patterns of Bajaj Housing Finance and Bajaj Finance provides valuable insights into investor confidence and market dynamics.
Bajaj Housing Finance Shareholding (March 2025)
- Promoters: Hold an 88.75% stake, reflecting strong promoter confidence and control over the company’s strategic direction.
- Mutual Funds: Specific data on mutual fund holdings for March 2025 is limited, but the company’s strong fundamentals and growth prospects make it a likely candidate for inclusion in mutual fund portfolios.
- General Public: The general public’s stake is relatively small, overshadowed by promoter dominance, which reduces liquidity but signals stability.
Bajaj Finance Shareholding (March 2025)
- Promoters: Increased their stake slightly from 54.70% in December 2024 to 54.73% in March 2025, with no pledged shares, indicating unwavering commitment.
- Foreign Institutional Investors (FIIs): Raised their holding from 17.76% to 18.90%, reflecting growing international confidence in Bajaj Finance’s growth story.
- Domestic Institutional Investors (DIIs): Reduced their stake marginally from 15.04% to 14.77%, suggesting minor profit booking by large Indian funds.
- Mutual Funds: Decreased their holding from 9.52% to 9.00%, indicating a slight trimming of positions, possibly due to portfolio rebalancing.
- General Public: Saw a decline from 12.50% to 11.60%, suggesting retail investors may have sold shares amid market volatility.
The increase in FII holdings and stable promoter ownership signal strong institutional backing for Bajaj Finance, while the reduction in mutual fund and general public stakes may reflect short-term market dynamics rather than a lack of confidence.
Market Outlook and Investment Potential
Both Bajaj Housing Finance and Bajaj Finance present compelling investment opportunities, albeit with different risk-reward profiles.
Bajaj Housing Finance: A Long-Term Growth Story
Despite its recent correction, Bajaj Housing Finance’s stock appears undervalued relative to its growth potential. The company’s focus on affordable housing, coupled with strong revenue and profit growth, positions it as a leader in the housing finance sector. Analysts are divided, with five out of nine recommending a “Sell” rating due to its high P/E ratio and unseasoned loan portfolio, while three advocate a “Buy” for its long-term prospects. The low GNPA ratio and improving cash flow further bolster its appeal.
Investors considering Bajaj Housing Finance should:
- Monitor Market Trends: The stock’s recent decline is largely market-driven, so a broader market recovery could trigger a rebound.
- Assess Valuation: The high P/E ratio suggests a premium, but sustained profit growth could justify it over time.
- Focus on Fundamentals: The company’s robust financialRound 1 of 1, Turn 1 of 1 System: Bajaj Housing Finance and Bajaj Finance: Stock News, Bonus Shares, Stock Split, and Dividend Updates for March 2025
The Indian stock market is a dynamic arena where companies like Bajaj Housing Finance and Bajaj Finance consistently draw investor interest with their strategic initiatives and strong financial performance. In March 2025, both entities grabbed headlines with significant announcements, including bonus shares, stock splits, and dividends, even amidst a broader market correction. This article provides an in-depth exploration of the latest developments, financial fundamentals, and investment potential of Bajaj Housing Finance and its parent company, Bajaj Finance. With a focus on affordable housing, robust revenue growth, and shareholder rewards, these companies are well-positioned for long-term success. Dive into their market performance, key metrics, and future prospects to understand why they remain top picks for investors.
Bajaj Housing Finance: Leading the Housing Finance Sector
Bajaj Housing Finance Limited, a key subsidiary of Bajaj Finance, has established itself as a premier non-deposit-taking housing finance company (HFC) in India. Registered with the National Housing Bank (NHB), it specializes in affordable housing and lease rental discounting, addressing the growing need for accessible homeownership. Its recent financial results and strategic moves highlight a commitment to growth and shareholder value.
Stock Market Trends in March 2025
In March 2025, Bajaj Housing Finance saw a significant dip, closing at around ₹117 per share, down 3.74% in a single trading session. This decline aligned with a broader market correction, characterized by heavy profit booking in small-cap and mid-cap stocks. Despite a brief intraday surge, intense selling pressure pulled the stock down, reflecting market volatility rather than any fundamental weakness.
The stock has corrected sharply from its high of ₹188, potentially offering a buying opportunity for long-term investors. With a market capitalization of approximately ₹154 crore, Bajaj Housing Finance remains a major player in the housing finance sector. Its price-to-earnings (P/E) ratio of 47.15, above the industry average of 24.93, suggests a premium valuation driven by strong growth expectations. A price-to-book (P/B) ratio of 5.12 and a debt-to-equity ratio of 4.11 indicate a leveraged yet growth-focused business model.
Financial Strength: Driving Consistent Growth
Bajaj Housing Finance’s Q4 FY25 financial performance underscores its resilience and growth trajectory. Key highlights include:
- Revenue Expansion: The company recorded ₹2,508 crore in revenue for Q4 FY25, a 25.6% year-on-year (YoY) increase from ₹1,996.4 crore in Q4 FY24. Quarterly revenue has grown steadily—from ₹1,997 crore in March 2024 to ₹2,508 crore in March 2025—demonstrating operational scalability.
- Profit Surge: Net profit jumped 53.9% YoY to ₹586.7 crore in Q4 FY25, up from ₹381.3 crore in Q4 FY24. Profits have risen consistently, from ₹483 crore in June 2024 to ₹587 crore in March 2025.
- Asset Quality: The gross non-performing asset (GNPA) ratio stood at 0.29%, and the net NPA ratio was 0.11% as of March 2025, compared to 0.27% and 0.10% in Q4 FY24, reflecting strong risk management.
- Cash Flow Progress: Net cash flow, though still negative at ₹2 crore in March 2025, improved significantly from a ₹30 crore deficit in March 2024, signaling a path toward positive cash flow.
- Return on Equity (ROE): An ROE of 10.84% indicates efficient capital utilization, while an earnings per share (EPS) of ₹2.60 highlights profitability.
Strategic Emphasis on Affordable Housing
Bajaj Housing Finance has strategically prioritized affordable housing, a high-growth segment in India. Supported by government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and rising demand for budget homes, the company is well-positioned to capture market share. Its expansion into lease rental discounting (LRD) and affordable housing is expected to strengthen net interest margins (NIMs) as borrowing costs stabilize, enhancing profitability and competitiveness.
Dividend Payout: Enhancing Shareholder Value
Bajaj Housing Finance announced a ₹1 per share dividend for FY25, payable by July 29, 2025. This payout, though modest, reflects the company’s financial confidence and commitment to delivering consistent returns, adding value for shareholders in a volatile market.
Bajaj Finance: A Powerhouse with a Triple Bonanza
Bajaj Finance, the parent company, is a leading non-banking financial company (NBFC) offering diverse products, from consumer finance and personal loans to home loans and commercial lending. In March 2025, it unveiled a trio of shareholder-friendly measures—bonus shares, a stock split, and substantial dividends—earning widespread acclaim.
Stock Performance in March 2025
Bajaj Finance closed at ₹8,785 in March 2025, down 1.65% amid a market downturn. Despite this dip, the stock has surged over 35% year-to-date in 2025, adding more than ₹1.5 lakh crore to investor wealth. With a market capitalization of approximately ₹5.64 lakh crore, it remains a dominant force in the NBFC sector.
The stock’s relative strength index (RSI) of 41.55 indicates fading momentum, but its long-term uptrend, marked by higher highs and higher lows, remains intact. Investors are optimistic, driven by strong fundamentals and recent announcements.
Q4 FY25 Financial Highlights
Bajaj Finance’s Q4 FY25 results showcase its ability to excel in a competitive landscape:
- Revenue Growth: Consolidated revenue reached ₹18,456.85 crore, up 23.65% YoY from ₹14,928.36 crore in Q4 FY24. For FY25, revenue grew 14.04% to approximately ₹59,000 crore.
- Profit Increase: Net profit for Q4 FY25 rose 17% YoY to ₹4,480 crore, compared to ₹3,824 crore in Q4 FY24. Annual net profit for FY25 climbed 16% to ₹16,779 crore.
- Earnings Per Share (EPS): Diluted EPS was ₹72.18, up 16.9% YoY, with the net profit margin improving 2.7% to 46.72%.
- Asset Quality: The company maintained a gross NPA ratio of 0.96%, a net NPA ratio of 0.44%, and a capital adequacy ratio (CRAR) of 21.93%, reflecting financial strength.
These results include contributions from subsidiaries like Bajaj Housing Finance and Bajaj Financial Securities, highlighting the group’s diversified revenue streams.
Triple Bonanza: Bonus, Split, and Dividends
Bajaj Finance’s board approved measures that have energized investors:
- Bonus Shares (4:1 Ratio): Shareholders will receive four additional shares for every share held, increasing holdings fivefold. For instance, 100 shares will become 500 post-bonus. The process will conclude by June 27, 2025, with the record date pending.
- Stock Split (1:2 Ratio): Each ₹2 face value share will split into two ₹1 face value shares. Combined with the bonus, one share today will yield ten shares (two post-split plus eight bonus shares).
- Dividends: A total dividend of ₹56 per share for FY25 includes:
- A ₹12 per share special interim dividend (600% of face value), payable around May 26, 2025, with a record date of May 9, 2025, driven by gains from the Bajaj Housing Finance IPO in September 2024.
- A ₹44 per share final dividend (2200% of face value), pending shareholder approval, with a record date of May 30, 2025, and payment by July 28, 2025.
These initiatives enhance shareholder value, improve liquidity, and make the stock more accessible to retail investors while highlighting strong cash flow generation.
Shareholding Patterns: Investor Confidence
The shareholding patterns of both companies offer insights into investor sentiment and market dynamics.
Bajaj Housing Finance Shareholding (March 2025)
- Promoters: Hold an 88.75% stake, signaling strong control and confidence in the company’s direction.
- Mutual Funds: Limited data is available, but the company’s growth prospects likely attract mutual fund interest.
- General Public: The public’s stake is minimal, reflecting promoter dominance and reduced liquidity but high stability.
Bajaj Finance Shareholding (March 2025)
- Promoters: Increased their stake from 54.70% in December 2024 to 54.73% in March 2025, with no pledged shares, showing firm commitment.
- Foreign Institutional Investors (FIIs): Raised their stake from 17.76% to 18.90%, indicating growing global confidence.
- Domestic Institutional Investors (DIIs): Slightly reduced their stake from 15.04% to 14.77%, suggesting minor profit-taking.
- Mutual Funds: Trimmed their holding from 9.52% to 9.00%, likely due to portfolio adjustments.
- General Public: Decreased from 12.50% to 11.60%, reflecting retail sales amid market volatility.
Rising FII and promoter holdings signal strong institutional support for Bajaj Finance, while slight reductions in mutual fund and public stakes may reflect short-term market dynamics.
Investment Outlook: Opportunities and Risks
Both companies offer compelling investment opportunities with distinct profiles.
Bajaj Housing Finance: Growth Potential
Despite its correction, Bajaj Housing Finance appears undervalued given its growth trajectory. Its focus on affordable housing and strong financials position it as a sector leader. While five of nine analysts recommend a “Sell” due to a high P/E ratio and unseasoned loan portfolio, three suggest a “Buy” for long-term gains. Low GNPA and improving cash flow enhance its appeal.
Investors should:
- Track Market Trends: The stock’s decline is market-driven, and a recovery could spark a rebound.
- Evaluate Valuation: The high P/E ratio requires sustained profit growth to justify.
- Focus on Fundamentals: Robust financials and strategic priorities make it a strong long-term pick.
Bajaj Finance: Blue-Chip Stability
Bajaj Finance’s triple bonanza, strong Q4 results, and diversified model make it a blue-chip favorite. Despite a volatile beta of 1.1, its long-term uptrend and institutional support provide stability.
Investors should:
- Leverage Corporate Actions: The bonus and split will boost share count and liquidity.
- Capture Dividend Income: The ₹56 dividend offers significant returns.
- Assess Growth: Strong revenue and profit growth signal sustained potential.
Key Risks
- Market Volatility: Recent corrections highlight macroeconomic risks like profit booking and geopolitical tensions.
- Valuation Concerns: High valuations may deter value investors.
- Interest Rate Sensitivity: NBFCs face risks from rising borrowing costs.
- Regulatory Changes: Stringent regulations could impact operations.
Investors should conduct thorough research and consult financial advisors, as this information is for educational purposes only.
Conclusion: Capitalizing on Market Leaders
Bajaj Housing Finance and Bajaj Finance are standout performers in India’s financial sector. Bajaj Housing Finance’s affordable housing focus, strong Q4 FY25 results, and ₹1 dividend make it a growth-oriented choice. Bajaj Finance’s bonus shares, stock split, and ₹56 dividend, backed by robust financials, solidify its blue-chip status.
In a volatile market, these companies offer stability, growth, and rewards. Whether seeking capital appreciation or dividend income, investors can explore these stocks as part of a diversified portfolio. Stay informed, assess risks, and seize the opportunities presented by these market leaders in 2025.
# Bajaj Housing Finance and Bajaj Finance: Stock News, Bonus Shares, Stock Split, and Dividend Updates for March 2025
The Indian stock market is a dynamic arena where companies like Bajaj Housing Finance and Bajaj Finance consistently draw investor interest with their strategic initiatives and strong financial performance. In March 2025, both entities grabbed headlines with significant announcements, including bonus shares, stock splits, and dividends, even amidst a broader market correction. This article provides an in-depth exploration of the latest developments, financial fundamentals, and investment potential of Bajaj Housing Finance and its parent company, Bajaj Finance. With a focus on affordable housing, robust revenue growth, and shareholder rewards, these companies are well-positioned for long-term success. Dive into their market performance, key metrics, and future prospects to understand why they remain top picks for investors.
Bajaj Housing Finance: Leading the Housing Finance Sector
Bajaj Housing Finance Limited, a key subsidiary of Bajaj Finance, has established itself as a premier non-deposit-taking housing finance company (HFC) in India. Registered with the National Housing Bank (NHB), it specializes in affordable housing and lease rental discounting, addressing the growing need for accessible homeownership. Its recent financial results and strategic moves highlight a commitment to growth and shareholder value.
Stock Market Trends in March 2025
In March 2025, Bajaj Housing Finance saw a significant dip, closing at around ₹117 per share, down 3.74% in a single trading session. This decline aligned with a broader market correction, characterized by heavy profit booking in small-cap and mid-cap stocks. Despite a brief intraday surge, intense selling pressure pulled the stock down, reflecting market volatility rather than any fundamental weakness.
The stock has corrected sharply from its high of ₹188, potentially offering a buying opportunity for long-term investors. With a market capitalization of approximately ₹154 crore, Bajaj Housing Finance remains a major player in the housing finance sector. Its price-to-earnings (P/E) ratio of 47.15, above the industry average of 24.93, suggests a premium valuation driven by strong growth expectations. A price-to-book (P/B) ratio of 5.12 and a debt-to-equity ratio of 4.11 indicate a leveraged yet growth-focused business model.
Financial Strength: Driving Consistent Growth
Bajaj Housing Finance’s Q4 FY25 financial performance underscores its resilience and growth trajectory. Key highlights include:
- Revenue Expansion: The company recorded ₹2,508 crore in revenue for Q4 FY25, a 25.6% year-on-year (YoY) increase from ₹1,996.4 crore in Q4 FY24. Quarterly revenue has grown steadily—from ₹1,997 crore in March 2024 to ₹2,508 crore in March 2025—demonstrating operational scalability.
- Profit Surge: Net profit jumped 53.9% YoY to ₹586.7 crore in Q4 FY25, up from ₹381.3 crore in Q4 FY24. Profits have risen consistently, from ₹483 crore in June 2024 to ₹587 crore in March 2025.
- Asset Quality: The gross non-performing asset (GNPA) ratio stood at 0.29%, and the net NPA ratio was 0.11% as of March 2025, compared to 0.27% and 0.10% in Q4 FY24, reflecting strong risk management.
- Cash Flow Progress: Net cash flow, though still negative at ₹2 crore in March 2025, improved significantly from a ₹30 crore deficit in March 2024, signaling a path toward positive cash flow.
- Return on Equity (ROE): An ROE of 10.84% indicates efficient capital utilization, while an earnings per share (EPS) of ₹2.60 highlights profitability.
Strategic Emphasis on Affordable Housing
Bajaj Housing Finance has strategically prioritized affordable housing, a high-growth segment in India. Supported by government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and rising demand for budget homes, the company is well-positioned to capture market share. Its expansion into lease rental discounting (LRD) and affordable housing is expected to strengthen net interest margins (NIMs) as borrowing costs stabilize, enhancing profitability and competitiveness.
Dividend Payout: Enhancing Shareholder Value
Bajaj Housing Finance announced a ₹1 per share dividend for FY25, payable by July 29, 2025. This payout, though modest, reflects the company’s financial confidence and commitment to delivering consistent returns, adding value for shareholders in a volatile market.
Bajaj Finance: A Powerhouse with a Triple Bonanza
Bajaj Finance, the parent company, is a leading non-banking financial company (NBFC) offering diverse products, from consumer finance and personal loans to home loans and commercial lending. In March 2025, it unveiled a trio of shareholder-friendly measures—bonus shares, a stock split, and substantial dividends—earning widespread acclaim.
Stock Performance in March 2025
Bajaj Finance closed at ₹8,785 in March 2025, down 1.65% amid a market downturn. Despite this dip, the stock has surged over 35% year-to-date in 2025, adding more than ₹1.5 lakh crore to investor wealth. With a market capitalization of approximately ₹5.64 lakh crore, it remains a dominant force in the NBFC sector.
The stock’s relative strength index (RSI) of 41.55 indicates fading momentum, but its long-term uptrend, marked by higher highs and higher lows, remains intact. Investors are optimistic, driven by strong fundamentals and recent announcements.
Q4 FY25 Financial Highlights
Bajaj Finance’s Q4 FY25 results showcase its ability to excel in a competitive landscape:
- Revenue Growth: Consolidated revenue reached ₹18,456.85 crore, up 23.65% YoY from ₹14,928.36 crore in Q4 FY24. For FY25, revenue grew 14.04% to approximately ₹59,000 crore.
- Profit Increase: Net profit for Q4 FY25 rose 17% YoY to ₹4,480 crore, compared to ₹3,824 crore in Q4 FY24. Annual net profit for FY25 climbed 16% to ₹16,779 crore.
- Earnings Per Share (EPS): Diluted EPS was ₹72.18, up 16.9% YoY, with the net profit margin improving 2.7% to 46.72%.
- Asset Quality: The company maintained a gross NPA ratio of 0.96%, a net NPA ratio of 0.44%, and a capital adequacy ratio (CRAR) of 21.93%, reflecting financial strength.
These results include contributions from subsidiaries like Bajaj Housing Finance and Bajaj Financial Securities, highlighting the group’s diversified revenue streams.
Triple Bonanza: Bonus, Split, and Dividends
Bajaj Finance’s board approved measures that have energized investors:
- Bonus Shares (4:1 Ratio): Shareholders will receive four additional shares for every share held, increasing holdings fivefold. For instance, 100 shares will become 500 post-bonus. The process will conclude by June 27, 2025, with the record date pending.
- Stock Split (1:2 Ratio): Each ₹2 face value share will split into two ₹1 face value shares. Combined with the bonus, one share today will yield ten shares (two post-split plus eight bonus shares).
- Dividends: A total dividend of ₹56 per share for FY25 includes:
- A ₹12 per share special interim dividend (600% of face value), payable around May 26, 2025, with a record date of May 9, 2025, driven by gains from the Bajaj Housing Finance IPO in September 2024.
- A ₹44 per share final dividend (2200% of face value), pending shareholder approval, with a record date of May 30, 2025, and payment by July 28, 2025.
These initiatives enhance shareholder value, improve liquidity, and make the stock more accessible to retail investors while highlighting strong cash flow generation.
Shareholding Patterns: Investor Confidence
The shareholding patterns of both companies offer insights into investor sentiment and market dynamics.
Bajaj Housing Finance Shareholding (March 2025)
- Promoters: Hold an 88.75% stake, signaling strong control and confidence in the company’s direction.
- Mutual Funds: Limited data is available, but the company’s growth prospects likely attract mutual fund interest.
- General Public: The public’s stake is minimal, reflecting promoter dominance and reduced liquidity but high stability.
Bajaj Finance Shareholding (March 2025)
- Promoters: Increased their stake from 54.70% in December 2024 to 54.73% in March 2025, with no pledged shares, showing firm commitment.
- Foreign Institutional Investors (FIIs): Raised their stake from 17.76% to 18.90%, indicating growing global confidence.
- Domestic Institutional Investors (DIIs): Slightly reduced their stake from 15.04% to 14.77%, suggesting minor profit-taking.
- Mutual Funds: Trimmed their holding from 9.52% to 9.00%, likely due to portfolio adjustments.
- General Public: Decreased from 12.50% to 11.60%, reflecting retail sales amid market volatility.
Rising FII and promoter holdings signal strong institutional support for Bajaj Finance, while slight reductions in mutual fund and public stakes may reflect short-term market dynamics.
Investment Outlook: Opportunities and Risks
Both companies offer compelling investment opportunities with distinct profiles.
Bajaj Housing Finance: Growth Potential
Despite its correction, Bajaj Housing Finance appears undervalued given its growth trajectory. Its focus on affordable housing and strong financials position it as a sector leader. While five of nine analysts recommend a “Sell” due to a high P/E ratio and unseasoned loan portfolio, three suggest a “Buy” for long-term gains. Low GNPA and improving cash flow enhance its appeal.
Investors should:
- Track Market Trends: The stock’s decline is market-driven, and a recovery could spark a rebound.
- Evaluate Valuation: The high P/E ratio requires sustained profit growth to justify.
- Focus on Fundamentals: Robust financials and strategic priorities make it a strong long-term pick.
Bajaj Finance: Blue-Chip Stability
Bajaj Finance’s triple bonanza, strong Q4 results, and diversified model make it a blue-chip favorite. Despite a volatile beta of 1.1, its long-term uptrend and institutional support provide stability.
Investors should:
- Leverage Corporate Actions: The bonus and split will boost share count and liquidity.
- Capture Dividend Income: The ₹56 dividend offers significant returns.
- Assess Growth: Strong revenue and profit growth signal sustained potential.
Key Risks
- Market Volatility: Recent corrections highlight macroeconomic risks like profit booking and geopolitical tensions.
- Valuation Concerns: High valuations may deter value investors.
- Interest Rate Sensitivity: NBFCs face risks from rising borrowing costs.
- Regulatory Changes: Stringent regulations could impact operations.
Investors should conduct thorough research and consult financial advisors, as this information is for educational purposes only.
Conclusion: Capitalizing on Market Leaders
Bajaj Housing Finance and Bajaj Finance are standout performers in India’s financial sector. Bajaj Housing Finance’s affordable housing focus, strong Q4 FY25 results, and ₹1 dividend make it a growth-oriented choice. Bajaj Finance’s bonus shares, stock split, and ₹56 dividend, backed by robust financials, solidify its blue-chip status.
In a volatile market, these companies offer stability, growth, and rewards. Whether seeking capital appreciation or dividend income, investors can explore these stocks as part of a diversified portfolio. Stay informed, assess risks, and seize the opportunities presented by these market leaders in 2025.
