Bajaj Finance Tops Market Cap Gains in Q1 2025

Bajaj Finance saw a 32% rise in just three months, marking the largest market capitalization gain in India's equity market. The NBFC's market value shot up by Rs 1.3 lakh crore in Q1 2025 to Rs 5.6 lakh crore. As per the NSE500 companies' market capitalization, Reliance Industries (RIL) and Bharti Airtel had remarkable runs with an addition of almost Rs 90,000 crores to their market caps during that period. At the same time, Kotak Mahindra Bank and Bajaj Finserv were markedly up by Rs 70,000 crore and above in market capitalization.

These gains come after a significant selloff in the December quarter. Bajaj Finance had fallen by 11.4%, while Reliance and Bharti Airtel saw their stock prices drop by 18% and 7%, respectively.

Despite the recent rally, chartists predict continued upside for Bajaj Finance stock. Laurence Balanco, CLSA's chief chartist, notes that non-banking financial companies like Bajaj Finance are witnessing strong multi-year breakout trends, which are driving interest and momentum in the Indian market. In an interaction with CNBC-TV18, Balanco observed, “I expect a major multi-year trading range breakout in Bajaj Finance.”

Bajaj Finance stocks made all-time highs touching the mark of Rs 9,260.05 on the NSE earlier this week when the company announced the appointment of Rajeev Jain, its long-term MD and CEO, to the position of Vice Chair for three more years.

According to Morgan Stanley, which added Bajaj Finance to its Asia Pacific Ex-Japan and Global Emerging Markets focus lists, the lender has a positive investment outlook for the non-banking lender. The foreign brokerage believes Jain's promotion has put an end to months of speculation and uncertainty regarding his future with the company.  "With the management transition settled, credit costs expected to decline, a favorable interest rate cycle on the horizon, and easing regulatory risks, the outlook appears promising."

Goldman Sachs has upgraded its target price for Reliance Industries to Rs 1,640, indicating a 28% potential upside from current levels. The global brokerage anticipates that 

Reliance’s retail segment will grow by 6.5% year-on-year in the March quarter of FY25, recovering from an 8.5% decline in Q2 and a 5.7% increase in Q3.

“We expect the company’s core EBITDA for the March quarter to remain largely flat sequentially. However, investor focus is likely to be on growth trends in the retail segment and Jio’s revenue performance,” Goldman Sachs noted in an investor report.