Bajaj Finance Defies Weak Market, Strong Growth Fuels Five-Day Share Rally

Mumbai: Bajaj Finance shares moved higher even as the broader stock market traded under pressure on Tuesday, July 21, supported by strong June-quarter business growth and expectations around its upcoming financial results.

The stock gained for a fifth straight session and advanced in seven of the previous eight sessions. At 12.28 pm, it was trading 0.39 percent higher at Rs 1,068.20, against its previous close of Rs 1,064.

Market-Beating Rise

Bajaj Finance opened at Rs 1,064 and climbed to an intraday high of Rs 1,074.40. Its lowest level during the session was Rs 1,060.90. The rise took the stock closer to its 52-week high of Rs 1,102.50, while its 52-week low stands at Rs 787.90.

The company’s market value was around Rs 6.63 lakh crore, while the stock traded at a price-to-earnings ratio of 35.02. Its ability to stay positive in a falling market showed continued buying interest among investors.

Strong Business Update

The main reason behind the rally is Bajaj Finance’s healthy first-quarter business update. Assets under management rose 23.9 percent year-on-year to Rs 5.46 lakh crore, indicating strong demand for loans.

The lender also added a record 5.1 million customers during the quarter. This increased its total customer franchise to 124.4 million. Deposits grew nearly 15 percent from a year earlier to Rs 72,109 crore, strengthening its funding base.

Results Next Trigger

Investors will now focus on the company’s full June-quarter results, scheduled for July 30. Profit growth, asset quality, credit costs and management’s guidance for FY27 are likely to decide the stock’s next move.

Bajaj Finance has lowered its FY27 AUM growth target to 22 percent-24 percent from its historical range of 25 percent-30 percent as it gives greater attention to asset quality. It expects to add 15 million to 17 million customers during the year.

The stock has gained about 7 percent in July after rising 16 percent in June. However, its Relative Strength Index has reached 71, indicating overbought conditions and the possibility of short-term profit-booking if earnings fail to match the market’s expectations.

Disclaimer: This article is for information only and does not constitute investment advice; investors should consult qualified financial advisers before investing.