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Out of the 45 analysts that have coverage on Bajaj Auto, 23 of them have continue to have a ‘Buy’ rating on the stock, 10 say ‘Hold’, while 12 have a ‘Sell’ rating on the stock.
Elara Capital has the highest price target on the Street at ₹13,013, while Kotak Institutional Equities has the lowest target at ₹7,225.
Global brokerage firm Morgan Stanley has an ‘Overweight’ rating on Bajaj Auto, with a price target of ₹9,951 per share.
Bajaj Auto’s reported EBITDA was Rs 2,580 crore (+6% YoY; flat margins at 20.2%), in line with expectations.
Management expects the domestic motorcycle market to grow 6-8% annually, with the >125cc segment growing faster. Exports are expected to grow over 20% YoY, driven by regional recovery. Latin America saw a 40% YoY growth in Q3.
The company’s EV portfolio (2W and 3W) is now EBITDA positive, and its new Chetak 35 platform is supporting margin growth.
Nuvama Institutional Equities maintains a ‘Buy’ rating with a target price of ₹10,700. The brokerage expects Bajaj Auto’s domestic three-wheeler segment to grow at a 4% CAGR over FY25–27, driven by replacement demand and better business activity. It forecasts a 13% CAGR in three-wheeler exports, driven by demand in Latin America and ASEAN and the entry of quadricycles in Egypt.
Nuvama expects a 7% volume CAGR over FY25–27, with 6% growth in domestic sales and 9% in exports. The brokerage predicts an 11% revenue CAGR and 12% EBITDA CAGR, with an average return on equity of 35%.
On the other hand, Citi has a ‘Sell’ rating with a target price of ₹7,900, citing high stock valuations as a reason for its cautious stance. Citi notes that Q3 EBITDA exceeded estimates due to improved gross margins, though PAT was in line. Management’s outlook remains positive, with a 6-8% YoY growth expected for the two-wheeler industry. Bajaj is focusing on margins, which has led it to reduce market share in the competitive entry-level bike segment.
Shares of Bajaj Steel Industries are currently trading 4.28% higher at ₹8,757.80. The stock is flat on a year-to-date basis.
