Bajaj Finance shares surged 5.48 per cent to hit an all-time high of Rs 8,440. The stock was last seen trading 5.18 per cent up at Rs 8,415.85. At this price, it has climbed 13.55 per cent in the past one month.
The non-banking financial company recorded an 18 per cent rise, year-on-year (YoY), in its third-quarter net profit for the ongoing financial year 2024-25 (Q3 FY25). Profit after tax (PAT) came at Rs 4,308 crore in Q3 FY25 as against Rs 3,639 crore in the year-ago period.
Net interest income increased by 23 per cent in Q3 FY25 to Rs 9,382 crore from Rs 7,655 crore in the corresponding period last year. "Number of new loans booked in Q3 FY25 was highest ever at 12.06 million as against 9.86 million in Q3 FY24, a growth of 22 per cent. Customer franchise stood at 97.12 million as of December 31, 2024, as compared to 80.41 million as of December 31, 2023, a growth of 21 per cent. In Q3 FY25, the company recorded highest-ever quarterly increase in its customer franchise of 5.03 million," Bajaj Finance stated.
"Bajaj Finance posted a good set of numbers in the December 2024 quarter. With the consumption boost in the Budget 2025, NBFC companies like Bajaj Finance are going to benefit in the medium- to long-term," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. Any rate cut announcement in the upcoming RBI monetary policy can also benefit the company, Bathini added.
And, the Reserve Bank's official announcement on repo rate is slated to be declared on February 7.
On technical setup, an analyst said the stock looked 'bullish' but also overbought on daily charts. Support on the counter could be seen at Rs 8,000, followed by Rs 7,900 and Rs 7,820 levels.
"Bajaj Finance has seen a strong breakthrough and marched for record highs. There has been a structural breakout on a broader time frame with Rs 8,000-7,900 to cushion any profit booking, while the next potential resistance is seen around Rs 8,800 in the near period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"The stock price is bullish but also very overbought on daily charts with next resistance at Rs 8,666. Investors should be booking profits as a daily close below support of Rs 7,820 can lead to a downward target of Rs 6,975 in the near term," said Sebi-registered research analyst AR Ramachandran.
The stock traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 77.29. A level below 30 is defined as oversold while a value above 70 is considered overbought.