GST Cut, Festive Demand Could Power 20% Upside In Bajaj Finance: SEBI RA Finkhoz Roboadvisory

The goods and services (GST) rate cut on consumer durables is expected to boost demand and is a major tailwind for companies like Bajaj Finance, according to SEBI-registered Finkhoz RoboAdvisory.

With GST on consumer durables slashed to 18% from 28% ahead of the festive season, demand for electronic goods, including televisions and washing machines, is expected to increase. As the leading financier of EMIs for such goods, Bajaj Finance is well-positioned to benefit from increased loan disbursal, the analyst said.

At the time of writing, Bajaj Finance shares were up 0.2% to ₹936.7.

Technical Take

Bajaj Finance has been moving within a rising channel since mid-2024, signaling a clear bullish undertone. The stock recently found strong support near ₹900 and rebounded, keeping its uptrend intact, the analyst said.

The weekly Relative Strength Index (RSI) stands at 58, showing strength but with headroom for further gains.

Price action suggests consolidation within a bullish flag pattern, and a breakout above ₹950 could lead to the stock climbing to the ₹1,050-₹1,100 range, they said. On the downside, support is placed around ₹845, offering a cushion for short-term corrections.

Robust Q1 Earnings

The company has shown steady financial growth over the years. In the June quarter, net profit increased 21% to ₹4,765 crore, while revenue rose to ₹19,524 crore from ₹16,100 crore in the same period last year. Asset quality also improved, with the Gross NPA easing to 1.03% and the Net NPA at 0.50%.

The stock has surged more than 37% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN05092025007385015968ID1110021640