Bajaj Auto shares fall 3% after Q4 results

Shares of Bajaj Auto fell 3% at Rs 8,753 on Friday after the two-wheeler major reported a standalone net profit of Rs 1,936 crore for the quarter ended March 31, 2024, which was up by over 35% from Rs 1,432.88 crore reported by the company in the year-ago period.

The standalone revenue for the reported quarter stood at Rs 11,484.68 crore, up 30% from Rs 8,904.72 crore reported in the corresponding period of the last financial year.

The revenue clocked an all-time high of Rs 44,685 crore for the financial year ended March 31, 2024, up 23% year-on-year (YoY), arising from the record sales of both vehicles and spares, the company filing said.

The company has also announced a dividend of Rs 80 per share for the financial year ended 31 March 2024.

Also read: Bajaj Auto Q4 Results: PAT jumps 35% YoY to Rs 1,936 crore

Here’s what brokerages say on Q4 results:

Kotak Institutional Equities

On the backing of higher average selling price (ASP) assumptions, higher gross margins, driven by a richer product mix and lower share count due to buyback, the brokerage firm maintains its ‘sell’ rating on Bajaj Auto by raising their target price by 4-5% at Rs 6,200.Overall, the domestic 2-wheeler industry volumes are expected to increase at a CAGR of 8-9% over FY25-26, driven by strong growth in the 125 cc segment and pick-up in EV volumes. However, the export 2-wheeler segment’s volume recovery is likely to fall below expectations.

JP Morgan

JPMorgan maintained an overweight rating on Bajaj Auto but raised the target price to Rs 10,000 from Rs 8900 earlier.

The company is preparing for another year of outperformance. Improving export outlook with differentiated strategy across markets. EV volume momentum can continue to support re-rating. The global investment bank expects domestic market share to be supported by new Pulsars, CNG motorcycles and more launches in Triumph.

Nuvama Wealth

Nuvama maintains its ‘buy’ call with an unchanged target price of Rs 10,340 as a strong rural demand, positive urban demand, new products, better finance availability and a favorable base effect to drive a domestic volume improvement (8% CAGR over FY24–26E) is anticipated.

The upcoming launches in the premium and electric space should support volumes. The company is also launching a CNG-powered motorcycle in Jun24, with 50% lower running cost, targeting the 100–125cc segment. Successful launch of this product can provide upside to volume estimates.

Motilal Oswal

The brokerage firm has reiterated its ‘neutral’ stance on Bajaj Auto with a revised target of Rs 8,360.

As per estimates, while Bajaj Auto is likely to outperform the domestic motorcycles segment led by its healthy launch pipeline, the export outlook still remains uncertain given the geopolitical headwinds in key markets.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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