Bajaj Finance Shares: Bonus Issue, Split & Buy/Hold?
Decipher the future of your investments with a deep dive into Bajaj Finance! As News Directory 3 reports, the upcoming ex-dividend date of June 16th marks a critical juncture for Bajaj Finance shareholders. Understand if you should buy, sell, or hold during the anticipated volatility surrounding the stock split and bonus share issuance. Learn from expert analysts who are weighing in on potential gains,especially for those holding long-term. Discover insights to navigate this financial landscape, including projections from Axis Securities and BOB Capital Markets, alongside valuable commentary on bonus shares and the stock split itself. Will you profit from the strategic advice offered? Discover what’s next for Bajaj Finance!
Bajaj Finance Stock Split and Bonus: Should You Buy?
Updated June 12,2025
Bajaj Finance shares are set to trade ex-dividend on June 16,marking the stock split and bonus share issuance. This presents investors with a pivotal decision: to buy, sell, or hold. analysts are weighing in on the potential impacts of this corporate action, notably regarding short-term volatility and long-term gains in the Bajaj Finance stock.
Prashanth Tapse, Sr. VP Research at Mehta Equities, suggests a strategic approach for investors considering bonus shares. “If you are a long-term investor and confident on Bajaj Finance’s fundamentals, buying shares before the ex-date could be beneficial to capitalize on the stock split and bonus issue,” Tapse said. He cautioned about potential profit-booking and price adjustments around the ex-date,which could introduce short-term volatility in the stock split.
The upcoming ex-date may bring short-term fluctuations,but the core advice remains focused on the company’s fundamentals. Some analysts believe the stock’s valuation is currently at a premium compared to its competitors. They suggest waiting for corporate adjustments to settle before accumulating shares to mitigate risks associated with volatility.
The corporate action includes a 4:1 bonus share issue, where each share held entitles the investor to four additional shares. Furthermore, a 1:2 stock split will then double the total number of shares. For example, 50 shares will become 250 shares after the bonus issue, and then 500 shares after the stock split.
Axis Securities suggests a “buy” rating with a target price of Rs 10,225. The brokerage anticipates strong growth in AUM, NII, and earnings, projecting a CAGR of 25-26% over the medium term. This outlook is supported by stable NIMs, improved operating leverage, and a positive outlook on asset quality.
“If you are a long-term investor and confident on Bajaj Finance’s fundamentals, buying shares before the ex-date could be beneficial to capitalize on the stock split and bonus issue.”
BOB Capital Markets has also issued a “buy” rating, setting a target of Rs 11,025.They cite potential rate cuts aiding the cost of funds and tight control on operating expenses as factors driving earnings growth. They project a 25% CAGR for AUM between fiscal years 2025 and 2027.
What’s next
Investors should closely monitor Bajaj Finance’s performance around the ex-dividend date on June 16. Observing how the stock adjusts to the corporate actions will provide valuable insights for both short-term and long-term investment strategies.