Bajaj Finance Ltd., one of India’s leading non-banking financial companies (NBFCs), has announced its Q4 FY25 results, bringing exciting news for investors. The company has declared a 4:1 bonus issue, a 1:2 stock split, and a total dividend of ₹56 per share, including a special dividend. These corporate actions, along with strong financial performance, have sparked significant market interest.
This article provides a detailed analysis of Bajaj Finance’s Q4 results, bonus shares, stock split, dividend payout, and share price trends, ensuring investors have all the necessary insights.
Bajaj Finance Q4 FY25 Results: Key Highlights
1. Financial Performance
- Net Profit: ₹4,546 crore (up 19% YoY) 610
- Net Interest Income (NII): ₹9,807 crore (up 22.4% YoY) 6
- Assets Under Management (AUM): ₹4.16 lakh crore (up 26% YoY) 3
- New Loans Booked: 10.7 million (up 36% YoY) 3
- Gross NPA: 0.96% (stable asset quality) 3
Despite a slight miss on analyst estimates, Bajaj Finance demonstrated robust growth in loan disbursements and stable asset quality, reinforcing its leadership in the NBFC sector.
2. Dividend Announcement
- Special Dividend: ₹12 per share 6
- Final Dividend: ₹44 per share 6
- Total Dividend Payout: ₹56 per share 6
The special dividend was attributed to exceptional gains from the sale of Bajaj Housing Finance shares during its IPO in September 2024 6.
3. Bonus Issue (4:1) & Stock Split (1:2)
- Bonus Issue: 4 bonus shares for every 1 share held 36
- Stock Split: 1 share of ₹2 face value split into 2 shares of ₹1 each 6
These corporate actions aim to enhance liquidity and make shares more affordable for retail investors.
Bajaj Finance Share Price & Market Reaction
1. Current Share Price Trends
- Pre-opening Price (30 Apr 2025): ₹9,105 (BSE) 1
- 52-Week High/Low: ₹9,660 / ₹6,375.70 1
- Market Cap: ~₹5.65 lakh crore 8
Despite the positive announcements, the stock remained flat post-results, possibly due to profit booking after a strong rally.
2. Impact of Bonus & Stock Split on Share Price
- Bonus Issue: Increases outstanding shares, potentially lowering short-term price but improving liquidity.
- Stock Split: Reduces face value, making shares more accessible to small investors.
Historically, such corporate actions have boosted long-term investor interest.
Bajaj Finance Stock Split: What It Means for Investors
1. Key Details of the Stock Split
- Pre-Split: 1 share = ₹2 face value
- Post-Split: 2 shares = ₹1 face value each 6
2. Benefits of the Stock Split
- Increased Liquidity: More shares in circulation.
- Retail Participation: Lower nominal price attracts small investors.
- Psychological Boost: Perceived affordability drives demand.
Bajaj Finance Bonus Shares: Eligibility & Record Date
1. Bonus Ratio & Eligibility
- 4:1 Bonus Issue (4 free shares for every 1 held) 6
- Record Date: To be announced (likely in May-June 2025)
2. Impact on Shareholders
- Short-term: Possible price adjustment post-bonus issue.
- Long-term: Enhances shareholder value if the company sustains growth.
Dividend Payout: Key Dates & Tax Implications
1. Dividend Details
- Total Dividend: ₹56 per share (₹12 special + ₹44 final) 6
- Payment Dates:
- Special Dividend: On or before 26 May 2025
- Final Dividend: Subject to shareholder approval (expected by 28 July 2025) 3
2. Dividend Tax Implications
- Tax Rate: Dividends are taxable in the hands of investors as per their income slab.
- TDS: 10% if dividend exceeds ₹5,000 in a financial year.
Analyst Outlook & Future Growth Prospects
1. Growth Drivers
- Expanding AUM: Strong loan growth in consumer, SME, and rural segments.
- Digital Push: Enhanced fintech integrations and EMI card adoption.
- Stable NIMs: Net Interest Margins (NIMs) remain healthy.
2. Risks & Challenges
- Rising Competition: From banks and fintech players.
- Macroeconomic Factors: Interest rate hikes could impact borrowing costs.
3. Brokerage Views
- 69% Analysts Recommend “Buy” 8
- Valuations: P/E of 35.34, higher than industry average 8
Conclusion
Bajaj Finance’s Q4 FY25 results reflect strong operational performance, supported by a 4:1 bonus issue, 1:2 stock split, and ₹56 dividend per share. While the stock reacted neutrally post-announcement, the long-term growth outlook remains robust, driven by expanding AUM and digital initiatives.
Investors should track the record dates for bonus and dividend eligibility while considering the stock’s premium valuations. With sustained profitability and shareholder-friendly actions, Bajaj Finance continues to be a top pick in the NBFC space.
For more updates on Bajaj Finance share price, bonus shares, and stock split, stay tuned to financial news platforms.
FAQs
1. What is the Bajaj Finance bonus issue ratio?
- 4:1 (4 bonus shares for every 1 held) 6.
2. When will Bajaj Finance stock split be effective?
- The record date is yet to be announced (expected in May-June 2025) 6.
3. How much dividend did Bajaj Finance declare in Q4?
- Total dividend: ₹56 per share (₹12 special + ₹44 final) 6.
4. What was Bajaj Finance’s Q4 net profit?
- ₹4,546 crore, up 19% YoY 610.
5. Is Bajaj Finance a good stock to buy after the bonus issue?
- Analysts remain bullish, with 69% recommending “Buy” 8.
Read More; The Rise of Central Bank Digital Currencies
