Business

IIE DIGITAL DESK : Bajaj Finance has achieved a significant milestone in 2025, emerging as the top performer in the Nifty 50 index with an impressive 36% return year-to-date. This remarkable performance has propelled the company's market capitalization to over ₹5.4 lakh crore, surpassing established giants like Hindustan Unilever and placing it among the top eight listed companies in India  

 The surge in Bajaj Finance's stock price can be attributed to its robust financial results. In the third quarter of FY25, the company reported a 17% year-on-year increase in net profit, reaching ₹4,247 crore. Net interest income rose by 23% to ₹9,382 crore, and assets under management expanded by 28% to ₹3.98 trillion 

Analysts have expressed confidence in Bajaj Finance's continued growth. Brokerage firms like Morgan Stanley and Jefferies have set target prices of ₹9,300 and ₹9,270, respectively, citing the company's strong fundamentals and growth prospects 

The company's performance is also supported by favorable macroeconomic factors, including increased disposable income due to tax reforms and a reduction in the Reserve Bank of India's risk weight on bank loans to non-banking financial companies (NBFCs) 

Despite the positive outlook, Bajaj Finance faces challenges such as a 64% increase in provisions for potential bad loans and a rise in the gross non-performing asset (NPA) ratio to 1.12% from 0.95% a year ago. These factors highlight the risks associated with unsecured loan segments like credit cards and personal loans

Bajaj Finance's exceptional performance in 2025 underscores its position as a leading player in India's financial services sector. While challenges remain, the company's strong financials and favorable market conditions suggest continued growth and investor confidence in the coming quarters.