Bajaj Auto Ltd. share price target

We recommend a BUY rating on the stock with a TP of Rs 9,115/share, implying an upside of 10% from the CMP

*over or under performance to benchmark index Bajaj Auto Ltd (BAL) is India's second-largest and the world's sixth-largest motorcycle manufacturer. It is also the world's largest three-wheeler maker. The company is...

We maintain our BUY rating on the stock.

BJAUT's Q4FY25 revenue growth was muted at 6% YoY (down 5% QoQ) to Rs 128bn on account of slow volume growth offset by realisations

Update Note

After a recent correction in stock prices, we upgraded from HOLD to BUY rating.

Broadly in line with our estimate, Bajaj Auto’s Q3 standalone EBITDA grew 6% y/y to Rs25.8bn. Our positive stance on the company is backed by 1) expectations of cyclical upturns in 2Ws (domestic/ exports); 2) its vigorous EV strategy and 3) margin expansion from rising economies of scale and cost-cutting measures.

BJAUT's 2QFY25 performance was in line with our estimates. EBITDA margin remained stable QoQ at 20.2% as the impact of an adverse mix and raw material inflation was offset by price hikes.

BJAUT’s Q2 results were marginally weak on lower ASPs. BJAUT’s 2W retail growth has been muted (FY25YTD: 6.7%; Sep-Oct: 5.7%).

BJAUT's Q2FY25 revenue jumped 22%/10% YoY/QoQ to Rs 131bn aided by volume growth of 16% and favourable mix aiding faster growth

We maintain our HOLD rating on the stock.

APAT stood at Rs 2216 crore (against estimate of Rs 2228 crore) on a 21.8% growth in revenue and 40 bps expansion in EBITDA margin on y-o-y basis.

We met with the management of Bajaj Auto (BJAUT) to get an update on the different segments of the business. The management anticipates a 7-8% volume growth in the domestic 2W industry in FY25.

We reiterate our BUY call on Bajaj Auto Limited (BAL), as it has been registering healthy volume growth though export is yet to recover fully.