Despite recording a growth in its revenue and net profit, the shares of this leading NBFC plunged by 6% after it announced its financial results. In this article, we will try to understand the reasons behind this fall.
Price Movement
With a market capitalization of Rs 3,10,710 crore, Bajaj Finserv Ltd’s shares are currently trading at Rs 1,941 per share, down 9.5 percent from their 52-week high of Rs 2,150 per share. The stock has given a positive return of 20.38 percent in the last year.
Financial Highlights
On Tuesday, Bajaj Finserv announced its financial results. It reported a revenue of Rs 1,33,821 crores in FY25, up by 21.2 percent from its FY24 revenue of Rs 1,10,382 crores. It increased by 14.2 percent YoY from 32,041 crores in Q4 FY24 to 36,595 crores in Q4 FY25. Additionally, on a QoQ basis, it rose by 14.2 percent from 32,042 crores in Q3 FY25 to 36,595 crores in Q4 FY25
It posted a net profit of Rs 17,558 crores in FY25, up by 12.6 percent, from its FY24 net profit of Rs 15,595 crores. It increased by 16.4 percent YoY from 4,085 crores in Q4 FY24 to 4,756 crores in Q4 FY25. Additionally, on a QoQ basis, it rose by 7.8 percent from 4,412 crores in Q3 FY25 to 4,756 crores in Q4 FY25.
Additionally, the company has recommended a final dividend of Rs 1 per share for its shareholders, which, if approved by the board, will be credited on or before Tuesday, 29 July 2025.
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Potential reasons behind this fall
During Q4 FY25, Bajaj Finserv’s gross written premium fell 13 percent to Rs 4,326 crore from Rs 4,962 crore in Q4 FY24. The decline was due to new product rules in the life insurance business that came into force from October 1, 2024.
The company’s new business premium during the quarter was Rs 3,789 crore, a slight decline from Rs 3,953 crore last year. One of the other reasons can be the sharp rally seen during the past few months. The shares of Bajaj Finserv have posted superior returns of 20.38 percent and 11.04 percent against NIFTY 50 returns of 7.64 percent and 0.52 percent in the last one year and six months, respectively.
Bajaj Finserv technical highlights
- Current Price: Rs 1,940
- Downside Risk: 10.8%
- Key Support Levels: ₹1,913, ₹1,894, ₹1,852, ₹1,800, ₹1,760
- Resistance Levels: ₹1,988, ₹2,020, ₹2,080
The stock is testing its super trend line support, which it had pierced above on January 2, causing a 25% rally to ₹2,135 by April 24. A close below ₹1,938 would indicate a reversal of this 4-month uptrend.
Now, the stock is trading lower than its 20-day moving average (₹1,988) and nearing the 50-day moving average (₹1,913). Downtrend indications from momentum indicators point to short-term weakness with a possible slide towards ₹1,730. Upside moves can be expected to meet resistance at ₹2,020 and ₹2,080.
About the company
Bajaj Finserv Ltd. is a financial services conglomerate in India, which functions through its subsidiaries within segments such as life and general insurance, retail finance, wind power, and investment.
The company provides numerous types of loans, including personal, business, housing, education, automobile, and SME loans. It also avails investment products such as fixed deposits and mutual funds, other insurance products, wealth management services, and retirement planning solutions. Besides, it provides digital services, wallets, credit cards, and stock broking. Bajaj Finserv also owns 138 windmills with a total capacity of 65.2 MW.
Written by Satyajeet Mukherjee
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