Bajaj Finance Ltd on Tuesday became India's second non-banking finance company (NBFC) to cross 2 trillion in market capitalisation after its shares hit an all-time high, having rallied nearly 30% so far this year.

Shares of the company hit a record high of 3,474.20 on the BSE, up 2% from its previous close, pushing its market cap to 2.01 trillion. The stock was up for the fifth straight session today and has risen 20.6% during the period.

Housing Development Finance Ltd is India's biggest non-banking finance company with a market capitalisation of 3.70 trillion.

Investors have continued to buy in shares of Bajaj Finance after it reported strong earnings for the March quarter on 16 May. The company reported a consolidated net profit of 1,176.06 crore for the quarter ended March 2019, an increase of 57% year-on-year.

The consolidated results of Bajaj Finance include its wholly-owned subsidiaries – Bajaj Housing Finance and Bajaj Financial Securities.

The NBFC posted a net interest income (NII) of 3,395 crore in Q4FY19, up 50% on a year-on-year (y-o-y) basis. The lender booked 5.83 million new loans during the quarter under review, up 53% from 3.8 million in the same period last year and, on an annual basis, its assets under management (AUM) grew 41% to 1.15 trillion in Q4FY19.

"Bajaj Finance has maintained its robust growth trajectory, with deepening geographical penetration and increasing repeat business. Over the past two years, it has also enhanced its capabilities on two fronts – generating higher fee income and improving the deposit franchise. The latter would be a key driver for incremental liabilities over the next few years," Motilal Oswal said in a 16 May report.

Asset quality remained stable, with gross non-performing assets (NPAs) and net NPAs at 1.54% and 0.63%, respectively, at the end of March 2019.

"Management has once again demonstrated its execution skill during challenging times and its ability to grow the balance sheet while maintaining asset quality. A well-diversified loan book allows BAF to shift gears and deliver above-industry growth rates during challenging times. These strong execution capabilities should allow BAF to remain ahead of its competition and retain its dominant position among the major retail lenders," said HSBC Global research in a 17 May note.

HSBC Global has forecast a 35% CAGR in consolidated earnings over fiscal 2019-21, with healthy return ratios.

Of the analysts covering the stock, 15 have a “buy" rating, eight have a “hold" rating, while three have a “sell" rating, according to Bloomberg data.