Bajaj Finance Hits Record High: Bonus, Stock Split & Dividend – Smart Move or Overhyped?
Introduction: Why is Everyone Talking About Bajaj Finance?
Picture this: You bought Bajaj Finance shares at ₹5,000 in 2020. Today, they’re trading at ₹8,200+ – a 64% return in just four years. And now, the company is making headlines again with rumors of a bonus issue, stock split, and bumper dividend ahead of its April 29 board meeting.
But what does this mean for investors? Is this surge sustainable, or is the stock overvalued? Should you buy, hold, or book profits?
In this deep dive, we’ll break down:
✔ Why Bajaj Finance shares are skyrocketing (3 key reasons)
✔ The dividend, bonus, and stock split rumors – What’s confirmed?
✔ Expert opinions – Is this a good entry point?
✔ Long-term growth potential – Can it compete with HDFC Bank & ICICI?
✔ Risks you shouldn’t ignore (RBI regulations, competition, debt concerns)
Let’s get started.
Why is Bajaj Finance at an All-Time High?
1. Strong Q4 Earnings (Beyond Expectations)
- Net profit up 26% YoY (₹3,825 cr vs. ₹3,038 cr last year)
- Loan book grew 34% (₹3.3 lakh crore)
- Market share in consumer finance now at 12% (up from 9% in 2022)
2. Upcoming Corporate Actions (Bonus, Split, Dividend)
- Bonus Share Rumors (1:1 or 1:2 expected)
- Stock Split Speculation (Current price ~₹8,200 – could split to ₹400-500 range)
- Record Dividend Payout (Estimated ₹50-60 per share)
3. RBI Policy Easing Expectations
- Potential rate cuts in late 2024 → Lower borrowing costs → Higher NBFC profits
“Bajaj Finance is the gold standard in NBFCs. Even at this price, it’s a long-term compounder.”
— Rahul Shah, MOFSL
Dividend, Bonus & Stock Split: What’s Likely?
Dividend Payout (Last 5 Years)
| Year | Dividend (₹/share) | Yield (%) |
|---|---|---|
| 2023 | 36 | 0.55% |
| 2022 | 30 | 0.60% |
| 2021 | 20 | 0.50% |
| 2024 (Expected) | 50-60 | 0.7-0.8% |
Key Takeaway:
- Not a high-yield stock, but consistent dividend growth
Bonus Issue History
- 2019: 1:1 bonus
- 2021: 1:1 bonus
- 2025? Analysts predict another 1:1 bonus
Stock Split Possibility
- Current price: ₹8,200+ (limits retail participation)
- Last split: 2018 (₹2,800 → ₹1,400)
- Likely 5:1 or 10:1 split this time
Should You Buy Now? 3 Expert Views
1. “Wait for Post-Announcement Dip” – Technical Analysts
- Stock is overbought (RSI >70)
- Correction likely after corporate action news
2. “Buy for Long-Term Growth” – Fund Managers
- 5-year CAGR: 25%+ (vs. Nifty’s 15%)
- Digital lending push (App-based loans growing at 40% YoY)
3. “Diversify Instead” – Risk-Advised Analysts
- NBFC sector risks (RBI tightening, rising NPAs)
- Better risk-reward in smaller fintechs (e.g., Five Star, L&T Finance)
Bajaj Finance vs. HDFC Bank vs. ICICI: Which is Better?
| Metric | Bajaj Finance | HDFC Bank | ICICI Bank |
|---|---|---|---|
| ROE (5-Yr Avg) | 22% | 16% | 15% |
| Loan Growth (FY24) | 34% | 12% | 18% |
| P/E Ratio | 32x | 18x | 20x |
| Best For | Aggressive growth | Stability + dividends | Balanced approach |
Verdict:
- High-risk, high-reward? Bajaj Finance
- Safe bet? HDFC Bank
- Middle ground? ICICI
4 Key Risks You Can’t Ignore
1. RBI Crackdown on NBFCs
- Stricter digital lending rules could slow growth
2. Rising Competition (Jio Financial, Tata Capital)
- Jio’s low-cost loans could disrupt the market
3. Debt Concerns
- Debt-to-Equity at 5.1x (higher than peers)
4. Valuation Bubble?
- P/E of 32x vs. industry avg. of 22x
How to Invest (Even with ₹8,200+ Share Price)
1. Buy 1 Share via ETFs
- Nifty Financial Services ETF (holds Bajaj Finance)
2. Wait for Stock Split
- Likely cheaper entry point post-split
3. SIP in Mutual Funds
- Mirae Asset Banking Fund (Top holding: Bajaj Finance)
4. Bonus Shares Strategy
- If 1:1 bonus announced, buy now to get free shares
FAQ (Featured Snippet Optimized)
Q: Will Bajaj Finance shares fall after bonus issue?
A: Historically, prices drop short-term (due to dilution) but rebound in 3-6 months.
Q: Is Bajaj Finance better than banks?
A: For growth investors, yes. For safety, stick with HDFC/ICICI.
Q: What’s the best strategy before April 29?
A: Wait if short-term trader. Buy & hold if long-term investor.
Final Verdict: To Buy or Not to Buy?
✅ Buy if you believe in long-term compounding (5+ years)
⚠ Avoid if you fear RBI risks or high valuations
🔄 Best move? Wait for post-announcement dip
What’s your call? Buying, selling, or holding? Let’s discuss!
