Bajaj Finserv hits over 5-month high; stock surges 25% so far in CY25

Bajaj Finserv shares gained 2% to ₹1,955.50 on the BSE in Tuesday's intra-day trade and quoted close to its record high level of ₹2,029 touched on September 27, 2024.

Bajaj Finserv hit an over five-month high of ₹1,955.50, as the stock gained 3 per cent on the BSE in Tuesday’s intra-day trade in an otherwise range-bound market. The stock of the non--banking finance company is trading at its highest level since October 3, 2024. It had hit a record high of ₹2,029 on September 27, 2024.

 

Thus far in the calendar year 2025 (CY25), Bajaj Finserv stock has outperformed the market by surging 25 per cent. In comparison, the BSE Sensex is down 0.22 per cent during the same period.

 

On March 17, 2025, Bajaj Finserv signed share purchase agreements (SPAs) with Allianz SE to acquire a 26 per cent stake in the two insurance joint ventures—Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC)—for ₹24,180 crore.

 

 

Post the acquisition, Bajaj Group’s stake in the two insurance ventures will go up to 100 per cent from 74 per cent currently. Bajaj Finserv will hold 75.01 per cent, with Bajaj Holdings (19.95 per cent) and Jamnalal Sons (5.04 per cent) holding the rest. This ending of their joint venture allows both the groups to pursue independent strategies. 

 

Given the advantage of a single ownership in both companies, Bajaj Finserv’s management is confident that the acquisition will become a big driver of value for its stakeholders in the years to come.  ALSO READ | Stock Market LIVE Updates: Sensex climbs 180 pts to 78,150; Nifty at 23,700

 

The deal strengthens Bajaj Finserv's control, enhances strategic flexibility, and positions it for long-term growth in an expanding insurance market, ICICI Securities said in a note.

 

Bajaj Finserv is a financial conglomerate present in the financing business (vehicle finance, consumer finance, and distribution) via Bajaj Finance (BFL) and in the insurance space via its life insurance arm (BALIC) and nonlife subsidiary (BAGIC). 

 

Analysts believe strong growth visibility in the lending business and a healthy medium- to long-term outlook for both insurance businesses will likely act as a positive trigger for strong consolidated earnings going forward.

 

Mirae Asset Sharekhan believes all of Bajaj Finserv’s subsidiaries are well-placed to capture long-term growth opportunities. BFL stands out as it has a strong balance sheet, comfortable liquidity position, is well-capitalised, and is poised to deliver sector-leading RoA/RoE. The company has exhibited its strong ability to navigate through the economic downcycle, led by a prudent and agile management team, robust risk management framework and a diverse product offering strategy. The insurance subsidiaries are building well-diversified product portfolios and multi-channel distribution networks, which would help to gain market share on a sustainable basis, the brokerage firm said.  ALSO READ | HDFC Bank hits highest level in CY25, nears record high; up 9% in 2 weeks

 

Meanwhile, Bajaj Finserv reported a steady performance in December 2024 quarter (Q3FY25), supported by strong growth in its lending businesses (BFL & Bajaj Housing Finance), while its insurance subsidiaries faced regulatory and competitive challenges. 

 

BAGIC’s margins were impacted by higher Motor TP loss ratios and health insurance pricing regulations. Meanwhile, BALIC continued its focus on high-margin protection and ULIP products, though new business premium growth remained subdued. With a strategic emphasis on technology-driven financial services, expansion in health and asset management, and a disciplined capital allocation approach, Bajaj Finserv remains well-positioned for long-term growth, analyst at KRChoksey Shares & Securities said in Q3 result update.