Bajaj Finance shares flat post-stock split & bonus; is it a good entry point?

Shares of Bajaj Finance Ltd were last seen trading 0.07 per cent lower at Rs 932.70 on Monday, after turning ex-split in a 1:2 ratio and ex-bonus in a 4:1 ratio. Due to these corporate actions, some trading platforms from certain brokerages may still be displaying the unadjusted share price from Friday (adjusted price: Rs 933.40), which could reflect a nearly 90 per cent drop in the stock.

Some market experts believe the stock could be an attractive investment opportunity at current levels.

"From a share price perspective, it is a sentiment booster for retailers. With all these (RBI) rate cuts coming in, non-banking financial companies (NBFCs) -- including Bajaj Finance -- are better placed and their NIMs (net interest margins) are going to improve going further," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, in an interaction with Business Today. He expects the NBFC space to move up by 15-20 per cent in this financial year (2025-26).

At the current price, Vaishali Parekh, Vice-President – Technical Research at Prabhudas Lilladher, suggested that investors should go for the stock.

A 1:2 stock split means each existing share is split into two new shares, each with half the original face value. In the case of Bajaj Finance, the original face value was Rs 2. So, one share of Bajaj Finance (which closed at Rs 9,340 on Friday) was split into two shares with a face value of Re 1 each, and the stock price was adjusted accordingly.

Following this stock split, a 4:1 bonus issue came into effect. This means that for every single share held, investors received four additional shares. Since the original one share became two after the split, the bonus issue resulted in a total of eight additional shares being allotted. 

Bajaj Finance is an NBFC with a wide product portfolio comprising loans for two-wheelers, consumer durables, housing and small businesses among others.