Bajaj Finance Shares Slide Despite Solid Q4: Technical Analyst Sees Support At This Level

Published 30-04-2025, 11:10 am
© Reuters Bajaj Finance Shares Slide Despite Solid Q4: Technical Analyst Sees Support At This Level

Stocktwits - Bajaj Finance (NSE:BJFN) shares fell 5% on Wednesday despite ending Q4 FY25 on a strong note.

The non-banking financial company reported a 24% jump in revenue to ₹18,457 crore and a 19% rise in net profit to ₹4,546 crore.

However, its net interest margin (NIM) fell to 33% from 36%, indicating higher funding costs, and there was a slight rise in bad loans — gross NPA stood at 1.12% and net NPA at 0.48%.

The company announced significant shareholder rewards, including a 4:1 bonus issue, a 1:1 stock split, and a ₹56/share dividend (₹12 special + ₹44 final)

SEBI-registered analyst Aditya Hujband (MBA Investmentwala) noted the divergence between Bajaj Finance’s solid fundamentals and the stock’s downward movement.

He suggested that macroeconomic factors, sector-specific pressures, or high investor expectations already being priced in could be driving the short-term decline.

Another analyst, Harika Enjamuri shared some technical analysis on the stock.

Enjamuri highlights that stock faces immediate support at ₹8,850–₹8,445, with resistance near its all-time high of ₹9,146. A sustained breakout above this level could target ₹9,300–₹9,800.

She added that while Bajaj Finance’s operational strength and shareholder-friendly initiatives underline its market leadership, the stock could face short-term volatility given its recent rally.

Key factors to monitor will be the clear communication and execution of corporate actions, specifically the record dates for the special dividend (May 9) and the final dividend (May 30), according to Harika.

Brokerage firms have differing views on the stock. Morgan Stanley (NYSE:MS) has an ’Overweight’ rating and a target price of ₹10,500, suggesting a potential upside of 21%. In contrast, Bernstein has an ’Underperform’ rating with a target of ₹6,400, implying a possible downside of 26%.

Data on Stocktwits shows that retail sentiment remains ‘bullish’ on the counter.

Bajaj Finance sentiment and message volume on April 30 as of 11:00 am IST. | source: StocktwitsBajaj Finance stock gained 26% year-to-date (YTD).

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