Bajaj Auto share price soared 5.18% to hit a fresh 52-week high of Rs 5,403.95, a day after the company posted a growth of 6% YoY growth in the company’s second-quarter revenue in FY24 to Rs 10,777 crore. The company’s quarterly EBITDA surpassed the Rs 2,000 crore milestone for the first time at Rs 2,133 crore, registering a YoY growth of 21% during the same period. The share price of Bajaj Auto surged 5.42% in the last five days, 4% in the last one month, 26.35% in the last six months and a whopping 50.88% year-to-date.
Should you buy, sell or hold Bajaj Auto shares?
Jefferies: Buy – Target Price: Rs 6,000
“We continue to like Bajaj as we expect 2W demand revival in both domestic and export markets to fuel strong 13% volume and 21% EPS CAGR over FY23-26E; our FY24-25E EPS are 5-10% above street. Bajaj has updated its payout policy to include share buybacks along with dividends as potential means of shareholder returns; it has also placed a minimum payout ratio of 70% when surplus funds exceed Rs 15000 crore versus a maximum of 90% earlier. Its 17x FY25E PE is reasonable and 4-5% dividend yield is attractive. We fine-tune estimates and retain ‘Buy’ rating with revised Rs 6,000 Target Price (earlier Rs 5,560).
Prabhudas Lilladher: Buy – Target Price: 4,800
“Until now, Bajaj Auto had been witnessing a sharp increase in its 3W mix, which was aiding margins; we expect this trend to start moderating sequentially. We expect Bajaj Auto’s domestic premium segment volumes to grow (similar to the industry), market share gains in this and fast ramp-up of EVs could make us turn constructive on the stock. Bajaj Auto is currently trading at 18.5x FY25, on the higher side versus history. Maintain ‘Reduce’ with a Target Price of Rs 4,800 (Rs 4,750 earlier) at 16x Sep-25E EPS.”
Choice Broking: Add – Target Price: Rs 5,773
“We continue to maintain our positive stance on Bajaj auto supported by a gradual recovery in export volumes, increasing mix of 125+cc portfolio, the successful launch of Triumph in the new product category, favourable commodity mix and decent growth in 3W CNG portfolio (E-3W segment also growing at faster pace). Given the increasing share of the premium product portfolio and healthy growth in the CV segment, we maintain our ‘Add’ rating. We introduce and roll forward our valuation to FY26. We value the stock using SOTP-based methodology with a Target Price of Rs 5,733 (19x FY26E core EPS + KTM stake + Cash).”
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