On Thursday, shares of Bajaj Auto rose to be the top gainer in the Nifty 50. The brokerages are bullish on the stock and have raised the target price. Here are some brokerage’s views on the company:
Jefferies
The brokerage firm Jefferies has raised the target price on the stock of Bajaj Auto to Rs 9,000 from Rs 8,400, earlier. This is an upside of 25% from the current market price. The brokerage has a “Buy” rating on the stock.
The brokerage house is positive about the company as it believes Indian two-wheelers are about to see a strong cyclic recovery. Also, the company’s “exports appear to be bottoming too.”
Jefferies expects the company to deliver earnings per share growth of 19% over FY24-26. For FY25-26, the brokerage sees earnings per share to grow between 7-11%.
Motilal Oswal
The broking firm Motilal Oswal has kept the rating unchanged on the stock of Bajaj Auto to “Neutral”, with a target price of Rs 6,775. It has maintained its estimates for FY24-25.
“We now value BJAUT at ~20x Dec’25E EPS (vs. 18x Dec’25E EPS earlier) to factor in a healthy recovery in domestic 2W volumes, a gradual pickup in exports, and its growth in the growing e2W market through products and channel expansion,” said Motilal Oswal.
On the risk side, Motilal sees that the company’s large part of India’s profit pool (of premium motorcycles and three-wheelers) is vulnerable to possible disruption from electrification.
The broking firm JM Financial has maintained a “Buy” rating on the stock of Bajaj Auto, with a target price of Rs 7,700. It is estimated that the company’s revenue will grow by 16% over FY23-26 and earnings per share to grow by 21%.
The brokerage house sees Bajaj Auto’s “margins in the medium term are likely to draw support from favourable mix and higher operating leverage.” It is positive on the stock looking at its successful history of product intervention.
InCred Equities
The broking firm has raised the target price on Bajaj Auto’s stock to Rs 8,090 from Rs 5,775. However, it has kept the rating unchanged to “Add” on the stock taking into account that the company was able to make the transition to electric vehicles with the least impact on profitability.
The brokerage house raised the net profit estimates by 3-5% for FY24-26 after looking at the company’s divisions are on a strong growth path trajectory.