Bajaj Finance vs Shriram Finance: Which NBFC Stock To Buy Post RBI Repo Rate Cut?

Bajaj Finance vs Shriram Finance: As the Indian stock market is cheering post the Reserve Bank of India's 50 basis points (bps) repo rate cut announcement on Friday, spotlight is again on banking and non banking financial companies (NBFCs) like Shriram Finance and Bajaj Finance.

The share price of these two companies has surged nearly more than 4% on BSE since the RBI repo rate cut announcement. Additionally, Nifty Bank and Nifty Financials have surged nearly more than 1.5% after the announcement of RBI Governor Sanjay Malhotra on repo rate cut. Malhotra announced a whopping 50 basis points repo rate cut to reduce the RBI repo rate to three-year low of 5.5%. The RBI in its announcement has also reduced the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) to 5.25%, whereas the marginal standing facility (MSF) rate and the bank rate stood at 5.75%.

Bajaj Finance vs Shriram Finance: Which Stock To Buy Post RBI Repo Rate Cut June 2025

Bajaj Finance and Shiram Finance shares were trading higher on Friday post RBI repo rate cut announcement. Bajaj Finance shares opened higher at Rs 9395.95 per share on BSE on Friday. The company scrip was trading 5.10% higher at Rs 9388 per share on BSE at 12:20 pm.

Kotak Institutional Securities has maintained an 'Add' rating for Bajaj Finance indicating a 6% upside in its value to a face value of Rs 9500 apiece on BSE. Brokerage Motilal Oswal had maintained a 'neutral' rating for the NBFC stock with a target price of Rs 10000 indicating an upside of 12%.

Shriram Finance shares were trading 5.76% higher at 688.90 per share on BSE at 12:22 pm. The company scrip opened higher at Rs 651.4 per share on BSE today. The stock touched its 52-week high mark of Rs 730.43 per share on 27 September, 2024. Whereas, it touched its 52-week-low mark of Rs 480.01 per share on BSE on 6 June 2024.

Shriram Finance has been given a 'Buy' rating by Motilal Oswal in its Friday report. The brokerage has indicated an upside of 23% and fixed a target price of Rs 800 per share. Likewise, Kotak Institutional in its daily report (for Friday), maintained a 'Buy' rating for Shriram Finance stock indicating an upside of 15%.

RBI Repo Rate Cut June 2025

As the RBI has surpassed expectations of several economists by announcing a jumbo 50 basis points rate cut, the announcement is likely to impact the performance of banking sector companies and entities associated with financial services and lending institutions.

"The surprise rate cut of 50bps comes on the back of broad-based moderation in inflation (mainly led by 6th consecutive decline in food inflation in Apr'25) and slower than expected real GDP growth amid tariff policy uncertainties and geopolitical tensions. We believe that, a benign inflation outlook coupled with a challenging growth outlook amid trade policy uncertainty and geopolitical tensions provide room for more rate cuts. Against this backdrop, we think that there will be two more rate cuts of 25bps each in FY26 to support growth," noted Gautam Duggad, Head of Research, Institutional Equities, Motilal Oswal Financial Services Ltd.

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