The stock market can be a roller coaster ride, and Bajaj Finance share holders are definitely feeling the bumps. Despite posting strong Q1 2025 results, Bajaj Finance share price took a sharp nosedive, leaving many investors scratching their heads and wondering what to do next. Lets break it all down in simple, human terms.
What Happened to Bajaj Finance Share Price Today?
Lets get right to the point Bajaj Finance share price opened with a sharp gap down and quickly slipped to an intraday low of ¹900 on the NSE. Thats a fall of over 5% from its previous close of ¹958.95. Yep, thats a pretty steep drop for a stock that just posted solid earnings.
Strong Q1 2025 Results Then Why the Fall?
Sounds ironic, right? A company reports a 22% jump in profits and yet its stock takes a beating. But thats the stock market for you it doesn’t always react the way you expect.
Lets talk numbers:
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Net Profit: ¹4,765 crore (up 22% YoY)
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Net Interest Income (NII): ¹10,227 crore (also up 22%)
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Revenue: ¹19,524 crore (up 21%)
So far, so good. These numbers clearly show that Bajaj Finance is growing steadily. The company even booked 13.49 million new loans thats 23% more than last year. And it grew its customer base to 106.51 million. Pretty impressive, right?
AUM Growth Solid and Broad-Based
If you look at the Assets Under Management (AUM), the story remains upbeat. AUM grew by 25% YoY to ¹4.42 lakh crore. This was driven by:
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Mortgages: ¹1.36 lakh crore
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Urban B2C loans: ¹92,333 crore
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MSME lending: ¹52,538 crore
However, not every segment fired on all cylinders. The Two & Three-Wheeler Finance segment actually saw a 20% decline in AUM. That was a bit of a red flag.
So, What Spooked the Investors?
Good question. On paper, everything looks solid. But dig a little deeper and youll spot some cracks that mightve rattled the market.
Here are the main concerns:
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Rising NPAs: Gross and Net NPAs increased to 1.03% and 0.50% from 0.86% and 0.38% respectively.
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Stage 3 Assets: These increased by ¹554 crore.
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Provisions: Up 26% YoY to ¹2,120 crore.
So, even though the topline numbers look great, asset quality deterioration has raised eyebrows. Thats enough to make some cautious investors hit the Sell button.
What About The Cost of Funds and Deposits?
Heres some good news. The cost of funds eased by 20 basis points QoQ to 7.79%. Theres guidance for FY26 that pegs it further down to around 7.607.65%.
Deposits grew 15% YoY to ¹72,109 crore, now making up 19% of total borrowings. However, the company is recalibrating its reliance on deposits probably to manage risks better.
Subsidiary Performance: A Bright Spot
Not everything is gloomy. Bajajs subsidiaries held their own:
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Bajaj Housing Finance: Profit up 21%
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Bajaj Financial Securities: Profit up 37%
This showcases the diversified strength of the Bajaj group, and it’s definitely something long-term investors should cheer.
Technical View: Wheres the Stock Headed Next?
Heres where things get interesting. According to Sumeet Bagadia from Choice Broking, Bajaj Finance share has a strong support at ¹870. He expects the stock to bounce back to the ¹950¹960 range in the short term.
He advises existing holders to stay put with a stop loss at ¹870. If youre holding on, theres no urgent reason to panic especially if youre in it for the long haul.
Should New Investors Buy the Dip?
Buying the dip is like picking ripe fruit off the ground sweet, but risky if you dont check for bruises. Sumeet suggests that fresh investors could consider entering at these levels with a stop loss at ¹870 and targets of ¹950¹960.
Its a cautious green light but only if you can handle the short-term volatility.
Bajaj Finance Q1 2025: Snapshot Summary
Lets sum up the financial highlights:
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Profit after tax: ¹4,765 crore (up 22%)
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NII: ¹10,227 crore (up 22%)
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AUM: ¹441,450 crore (up 25%)
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New Loans Booked: 13.49 million (up 23%)
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Customer Base: 106.51 million (up 21%)
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Gross NPA: 1.03%
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Net NPA: 0.50%
Whats the Verdict Buy, Sell or Hold?
Lets keep it real. Bajaj Finance share has taken a hit, but the company is far from broken. This is a fundamentally strong NBFC with proven growth across segments.
If youre a current shareholder, hold tight set your stop loss at ¹870 and wait for the rebound.
If youre a new investor, consider entering the stock with a short-term horizon and proper risk controls.
L But if you’re risk-averse and hate volatility? Maybe sit this one out for now.
Final Thoughts: A Dip, Not a Dive
Stock market dips often test investor patience. In the case of Bajaj Finance share, this 5% fall looks more like a temporary stumble than a full-on crash. The underlying business is still solid, growth is intact, and management seems to be making the right moves.
So, should you panic? Probably not.
Should you be cautious? Absolutely.
Its like driving through a foggy road slow down, but dont stop unless theres a real hazard ahead.
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Conclusion
In short, Bajaj Finance delivered strong numbers in Q1 2025, but market sentiment turned sour due to concerns around rising NPAs and increased provisions. While the fundamentals remain robust, investors are advised to tread carefully. The dip could be a good opportunity just dont forget your seatbelt.
