Bajaj Auto Ltd. share price target

We maintain our BUY rating on the stock with a target price of Rs 5,400 with a potential upside of 17% from the CMP.

Bajaj Auto’s (BJAUT) Q1FY24 EBITDA margin at 19%, down 30bps QoQ, was in line with consensus estimate at 19.1%. The slight QoQ dip in margin was due to typical seasonal skew for commuter motorcycles on the back of it being the marriage season. Revenue improved 16% QoQ to INR 103bn driven by 31% QoQ volume growth in 2Ws on domestic front cushioning the weak but improving exports performance.

We therefore value the stock at 17x its Jun'25E core EPS (Rs 4,348/share), add for the company's stake in PMAG and surplus cash reserves at 1x book value to arrive at our TP of Rs 5,400/share (from Rs 4,785/share earlier), implying 11.5% upside from the CMP. We maintain our BUY rating on the sto..

Despite 13% lower volumes YoY, realisations steered topline growth of 12% in Q4 on the back of a better product mix

Bajaj Auto (BJAUT) has reported stronger-than-expected Q4FY23 earnings, both at revenue and profitability levels, resulting in 9% beat on consensus EBITDA. Revenue was up 12% YoY at Rs89bn, driven mainly by mix improvement and pricing, resulting in ~27% jump in ASP YoY as against 12% decline in volume.