4:1 Bonus, 1:2 Split, Rs 56 Dividend YTD: Bajaj Finance Is Rs 93.24 Away From 52-Week High; BUY NBFC Stock?

NBFC giant, Bajaj Finance, is among the top picks of Axis Securities for August 2025. The brokerage has recommended BUY on the Bajaj Group stock for a target price of Rs 1,100. Currently, Bajaj Finance is less than Rs 95 away from crossing its 52-week high levels. The company has been trending in 2025 due to its massive stock split, bonus issue, dividend payouts and well-positioned business module.

Bajaj Finance Share Price:

After market hours on August 4, Bajaj Finance stock price ended at Rs 885.35 apiece on BSE, nearly 1% with market cap of Rs 5,50,182.10 crore. This makes Bajaj Finance the largest NBFC in India in terms of market capitalisation.

With that, Bajaj Finance is just Rs 93.24 away from hitting its 52-week high of Rs 978.59 apiece. The stock is already up by nearly 38% from its 52-week low of Rs 642.61 apiece.

Bajaj Finance's return on equity (ROE) is at 20.35% as of August 4, 2025.

Why Buy Bajaj Finance Stock In August 2025?

According to Axis Securities note, BAF is set to witness improved margins, supported by faster transmission of the rate cuts in CoF and an optimal borrowing mix. While the majority of the segment continues to deliver healthy growth, emerging stress in the MSME segment could weigh on near-term growth for the company. It continued to adopt a prudent approach by trimming growth and prioritizing asset quality.

"As near-term asset quality challenges subside, we expect credit costs to gravitate to normalised levels, thereby supporting earnings. The re-designation of Mr Rajeev Jain as VC & MD (post resignation of Mr Anup Saha) and BAF having strengthened its top management team would ensure seamless strategy execution," said analysts at Axis Securities.

The brokerage is expecting BAF's NIMs (calc.) to remain steady, ranging between 8.9-9% over FY26-28E, driven by faster transmission of rate cuts reflecting in CoF. While credit costs are expected to gradually taper and range between 1.9 and 2% over FY26-28E.

Analysts note added, "Its diversified loan book should help BAF navigate this stress, thereby delivering a consistently strong AUM growth of ~25% CAGR over FY25-28E. Along with the existing segments, the company will also look to scale up LAP, Commercial Vehicles, Tractors, Gold, and Affordable Housing. While the management has maintained its AUM growth guidance of 23-24% for FY26, more clarity would emerge post Q2FY26."

Accordingly, the brokerage has set a Rs 1,100 target on BAF with BUY recommendation.

Bajaj Finance Dividend 2025:

The NBFC player turned ex-dividend in May 2025, for a special dividend payout of Rs 12 per share. Apart from this, the company also turned ex-dividend for final dividend of Rs 44 per share for FY25, with a face value of Rs 2 each. In total, Bajaj Finance's dividend payout was of 2800% or Rs 56 per share.

Bajaj Finance Bonus Issue:

Bajaj Finance also turned ex-bonus on June 27, for its bonus issue in the ratio of 4:1. This meant that, Bajaj Finance issued four new bonus shares at face value of Re 1 each, for every 1 existing share for face value of Re 1 each. This was the second bonus issue by Bajaj Finance. The last time the company delivered a free shares reward was in September 2016. A 1:1 bonus issue was recorded with an ex-date on September 10, 2016.

Bajaj Finance Stock Split:

Additionally, on June 27, Bajaj Finance also turned ex-split for sub-division ratio of 1:2. This led to the sub-division of 1 (one) equity share of the face value of Rs. 2 each fully paid up into 2 (two) equity shares of the face value of Re. 1 each fully paid-up. Notably, this was also Bajaj Finance's second stock split. The first sub-division was on September 10, 2016, in the ratio of 1:5, where the face value of Rs 10 was trimmed to Rs 2.

Bajaj Finance Ltd. ('BFL', 'Bajaj Finance', or 'the Company'), a subsidiary of Bajaj Finserv Ltd., is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.