Bajaj Finance: 'If you had invested Rs 1 cr in stock...', expert highlights stock's recent performance  

Indian equity indices closed on a positive note on March 20, with Nifty reaching around 23,200. At the end of trading, Sensex gained 899.01 points or 1.19 percent to close at 76,348.06, while Nifty surged 283.05 points or 1.24 percent to reach 23,190.65. The markets continued their winning streak, driven by favorable global market conditions.

On Wednesday, Bajaj Finance Ltd stock experienced a 2.3% increase, reaching a 52-week high of Rs 8,879 per share on the NSE.

Market observers were quick to react. CA Nitin Kaushik, a finance expert, took to social media to highlight the stock's performance over the years.

"If you had invested Rs 1 crore in Bajaj Finance during the 2008 crash, it would be worth Rs 850 crores today," Kaushik wrote on X.

The stock has achieved a positive return of 14.53% over the past six months and 31.7% over the past year. It has surged by over 26% year-to-date and shown a significant increase of more than 33% so far this year. Bajaj Finance stock is currently experiencing strong buying pressure, surpassing the 50-day moving average on the volume chart.

The recent market rally was triggered by the decision of global ratings agency S&P Global Ratings to upgrade Bajaj Finance Ltd's long-term rating outlook from ‘Stable’ to ‘Positive’. The agency also raised the company’s standalone credit profile (SACP) from BBB- to BBB, further boosting investor confidence in the company.

S&P Global Ratings report stated: “The positive outlook on the company reflects that on the sovereign credit rating on India. The rating on the company is capped by the sovereign rating and will therefore move in tandem with that on the sovereign.”

Shares of Bajaj Finance Ltd ended at Rs 8,679.80, down by Rs 57.35, or 0.66%, on the BSE.

Bajaj Finance's long-term outlook

Bajaj Finance is among the largest Non-Banking Financial Companies (NBFCs) in India that specialises in financing retail assets. The company holds a strong position in providing financial support for consumer durables, two- and three-wheelers, thereby showcasing its dominance in the Indian retail market. Furthermore, Bajaj Finance consistently demonstrates above-average profitability levels.

In related news, S&P Global Ratings recently announced a positive revision in the long-term rating outlook for Bajaj Finance, changing it from stable to positive. This revision reflects the rating agency's belief that the company will benefit from a more stringent regulatory environment, particularly for upper-layer finance companies in India. Consequently, S&P Global Ratings has upgraded Bajaj Finance's Standalone Credit Profile (SACP) by one notch to 'BBB' from 'BBB-'.

S&P Global Ratings anticipates that Bajaj Finance will uphold its robust market standing and solid capital position for the upcoming two years. Furthermore, the company's liquidity and funding profiles are projected to remain sufficient during this period.

Leadership changes

On March 20, Bajaj Finance Ltd announced key leadership changes. Rajeev Jain has been appointed as the vice chairman and executive director for a three-year term starting on April 1, 2025. Anup Kumar Saha, currently the deputy managing director, will now serve as the managing director until March 31, 2028. These appointments were approved by the company's board of directors and are pending shareholder approval. Jain, who has been with Bajaj Finance since 2007 and became managing director in 2015, played a pivotal role in diversifying the company's financial services offerings from solely an auto financier.