Bajaj Finance Shares Hit Record High After Strong Q1 Growth and Improved Asset Quality

Bajaj Finance shares surged more than 7% to an all-time high on Friday after the non-banking financial company (NBFC) reported stronger-than-expected first-quarter results. The stock emerged as the top gainer on the Nifty 50 index as investors welcomed the company’s accelerating loan growth, improved credit quality and robust earnings performance. The lender posted a 28% year-on-year rise in profit after tax, while net interest income increased 23%, exceeding analyst expectations despite higher funding costs.

The strong financial performance prompted at least six brokerage firms to raise their target prices for the stock. Analysts highlighted a notable improvement in asset quality, with CLSA reporting that Bajaj Finance’s calculated net slippage ratio declined to 1.2%, a 90-basis-point improvement from a year ago. Meanwhile, Nomura noted that the company’s gross stage-2 assets, which represent loans with elevated credit risk, fell to their lowest level since the COVID-19 pandemic.

Brokerage firm UBS said Bajaj Finance recorded its fastest assets under management (AUM) growth in three quarters, supported by strong momentum in consumer sales finance and gold loans. The combination of healthy loan growth, stable margins and improving credit metrics has strengthened investor confidence in the company’s long-term earnings outlook.

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