Bajaj Finance Share Price
Mumbai: Shares of Bajaj Finance Share Price., one of India’s leading non-banking financial companies (NBFCs), tumbled over 7% in early trade on Tuesday, a day after the company released its Q2 FY2025 earnings report.
The sharp fall came as investors digested a moderate growth outlook and rising concerns over asset quality pressure factors that overshadowed what was otherwise a steady quarter in terms of revenue and profit.
By midday, the stock was trading around ₹6,950, down from ₹7,500 levels, wiping out nearly ₹25,000 crore in market capitalization within hours.
Market watchers say the correction was triggered by management commentary hinting at slower loan growth in upcoming quarters and an expected rise in credit costs a combination that spooked short-term traders.
The Numbers Behind the Nervousness
Bajaj Finance Share Price reported a net profit of ₹3,638 crore, marking a 22% year-on-year increase, while net interest income (NII) rose 28% to ₹9,500 crore.
On the surface, those numbers look strong. But it’s the fine print that caught investor attention. The company’s net interest margin (NIM) a key profitability metric narrowed slightly due to rising borrowing costs.
Additionally, gross non-performing assets (GNPA) stood at 0.91%, compared to 0.87% in the previous quarter, signaling mild but notable pressure on asset quality.
In its investor presentation, Bajaj Finance trimmed its growth guidance for FY2025, citing “macro uncertainties and elevated competition” in the retail lending segment.
That was enough to trigger a knee-jerk reaction in the stock market.
“The market was pricing in higher growth, so even a small guidance cut feels like a disappointment,” said Ajay Bodke, independent market analyst. “However, from a long-term perspective, Bajaj Finance remains fundamentally strong.”
What’s Fueling Investor Concern?
There are three main reasons for the sharp correction, according to analysts:
- Slower Growth Guidance: Management indicated that loan book expansion may moderate as the company focuses on credit quality over aggressive lending.
- Narrowing Margins: With higher funding costs and increased competition, interest spreads could shrink further in the coming quarters.
- Valuation Pressure: At nearly 6x book value before results, Bajaj Finance’s valuation was expensive, leaving little room for any earnings disappointment.
The result? A swift profit-booking wave from institutional investors who had priced in flawless growth.
Should You Buy the Dip?
Bajaj Finance Share Price for long-term investors, the 7% slide may feel like a setback or perhaps, an opportunity.
Analysts are divided. Some see the correction as a healthy reset, while others caution that further downside cannot be ruled out if credit growth slows more than expected.
“This dip could be a buying opportunity for investors with a 3-5 year horizon,” says Rachit Mehta, head of research at StoxPro. “Bajaj Finance has a proven track record, a strong retail franchise, and resilient risk management. Short-term volatility doesn’t change that.”
However, not everyone agrees.
A few brokerage houses have revised their price targets downward, highlighting that earnings upgrades are unlikely in the near term. For instance, Nomura maintained a Neutral stance, citing “tight liquidity and margin compression risks.”
Technical Take Support and Resistance Levels
From a technical standpoint, the stock has breached its 200-day moving average (₹7,050) a bearish signal for momentum traders.
Bajaj Finance Share Price analysts believe ₹6,700–6,800 could act as the next support zone, while a sustained recovery above ₹7,200 may indicate renewed buying interest.
“Given its market leadership, the stock rarely stays down for long. But investors must watch the next quarter’s commentary carefully,” said Devina Shah, senior technical strategist at FinEdge Analytics.
The Big Picture Caution Now, Confidence Later
Bajaj Finance’s Q2 numbers show that it continues to grow, albeit at a slower pace a reflection of a broader normalization in India’s credit cycle.
While short-term volatility is likely, long-term fundamentals robust management, diversified lending, and digital transformation remain intact.
For now, experts advise staggered buying instead of rushing in.
In the words of one seasoned investor:
“Bajaj Finance is like the Maruti of the lending world a temporary slowdown doesn’t change the brand’s reliability.”
In other words, for patient investors, this dip might just be a pause before the next climb.
