Bajaj Finance is New King of Nifty with 36% YTD returns

Bajaj Finance has emerged as the undisputed star of 2025, delivering a remarkable 36% year-to-date return and adding ₹1.5 lakh crore to investor wealth. Its market capitalization now nears ₹6 lakh crore, following a multi-year breakout to a fresh 52-week high of ₹9,315. Analysts are bullish, with CLSA setting a target price of ₹11,000 and Elara Capital projecting ₹11,161. Bajaj Finance’s robust business model, diversification into high-growth areas like gold loans and microfinance, and strong rural expansion have fueled its success. Its AI-driven efficiencies and cross-sell franchise are key growth drivers. However, concerns over stretched valuations and provisioning risks persist. Future returns may rely more on earnings than P/E expansion. Despite challenges, Bajaj Finance remains a top growth story, poised to capitalize on cyclical tailwinds and maintain sector leadership. With a leadership transition strengthening its strategy, the company continues to dominate the NBFC space, making it a favorite on Dalal Street. Investors are watching closely as Bajaj Finance dances its way to new heights.