With this fall, the stock is down 10% so far in the month of March. If these losses hold, this could become the worst month for the stock since October 2024, when the shares had declined by a similar quantum.
From February 1 lows of ₹887, shares of Bajaj Finance had surged to an intraday high of ₹1,046 on February 20, a surge of 20% during this period. Since then, the stock is back down to levels of ₹900, giving up all the gains during this period.
For the December quarter, Bajaj Finance’s provisions increased by nearly ₹1,400 crore, which pressured its profitability. The management attributed the accelerated ECL provisions to ensure that the balance sheet remains “shock proof”.
The management in its earnings call had guided for growth for the full year to be around 22%, which is the lower end of the 22% to 23% range projected earlier.
With this recent fall, Bajaj Finance shares have slipped below all of their key moving averages. On the charts, the Relative Strength Index, at 31, is nearing “oversold levels.” An RSI reading below 30 means that the stock is “oversold.”
38 analysts have coverage on Bajaj Finance, of which 24 have a “buy” rating, six say “sell”, while eight others have a “hold” rating. Brokerage firm Ambit recently issued a “sell” rating on the stock with a price target of ₹713, which is the lowest on the street for the stock.
Shares of Bajaj Finance are trading 4.6% lower on Wednesday at ₹896.84.