Bajaj Auto shares: Should you buy, hold or sell auto stock post Q4 results
Bajaj Auto share price: Motilal Oswal said Bajaj Auto's rerating in the last 12 months was led by its market share gains in the 125cc+ domestic motorcycles segment, improved margins, and a one-of-a-kind policy to reward its shareholders.
- Apr 19, 2024,
- Updated Apr 19, 2024 10:31 AM IST
Bajaj Auto Q4 results review: Bajaj Auto Ltd fell over 2 per cent in Friday's trade even as the two-wheeler major’s March quarter results (Q4) largely met analyst estimates. Its Q4 revenue and margin were in fact slightly better than Street estimates. While most brokerages maintained 'Buy' on the stock, a few were concerned over its valuations following a 32 per cent surge on the counter in 2024 so far. Analyst price targets vary from Rs 6,200 to Rs 10,350 on the counter.
JM Financial said while domestic demand remains healthy, exports sales are expected to witness only gradual recovery owing to macro headwinds. "Margins in the medium-term are likely to draw support from favorable mix and higher operating leverage. Given the successful track record of product intervention by Bajaj Auto in the last few years, we remain positive on the stock," JM Financial said. This brokerage has a target of Rs 9,500 on the stock.
Motilal Oswal said Bajaj Auto's rerating in the last 12 months was led by its market share gains in the 125cc+ domestic motorcycles segment, improved margins, and a one-of-a-kind policy to reward its shareholders.
"After the sharp rally, however, the stock at 28 times/24 times FY25E/26E EPS appears fairly valued. We reiterate our Neutral rating with a target price of Rs 8,360 (premised on 22x FY26Econsol EPS)," Motilal Oswal said.
Nuvama maintained ‘BUY’ on Bajaj Auto on the stock with an unchanged target of Rs 10,340, based on 30 times FY26E core earnings and cash/investments of Rs 884 per share.
The first CNG-powered motorcycle launch is planned in June, and success of this disruptive product can provide upside to volume estimates, it said.
Choice Broking finds the stock worth Rs 9,612. Given the increasing share of premium product portfolio like Triumph, healthy growth in EV portfolio and improving profitability of chetak, it continues to maintain 'BUY' rating on the stock.
"We expect the domestic 2W segment’s recovery to continue, but a downside risk persists (exports), given higher inflation environment and geopolitical tensions. In our view, current profitability trends are likely to partly reverse, as the mix normalizes. Maintain SELL, as most positives are priced in at CMP. Valuations remain expensive at 30X FY2025E core EPS," Kotak said while suggesting a target of Rs 6,200 on the stock.
Bajaj Auto Q4 results review: Bajaj Auto Ltd fell over 2 per cent in Friday's trade even as the two-wheeler major’s March quarter results (Q4) largely met analyst estimates. Its Q4 revenue and margin were in fact slightly better than Street estimates. While most brokerages maintained 'Buy' on the stock, a few were concerned over its valuations following a 32 per cent surge on the counter in 2024 so far. Analyst price targets vary from Rs 6,200 to Rs 10,350 on the counter.
JM Financial said while domestic demand remains healthy, exports sales are expected to witness only gradual recovery owing to macro headwinds. "Margins in the medium-term are likely to draw support from favorable mix and higher operating leverage. Given the successful track record of product intervention by Bajaj Auto in the last few years, we remain positive on the stock," JM Financial said. This brokerage has a target of Rs 9,500 on the stock.
Motilal Oswal said Bajaj Auto's rerating in the last 12 months was led by its market share gains in the 125cc+ domestic motorcycles segment, improved margins, and a one-of-a-kind policy to reward its shareholders.
"After the sharp rally, however, the stock at 28 times/24 times FY25E/26E EPS appears fairly valued. We reiterate our Neutral rating with a target price of Rs 8,360 (premised on 22x FY26Econsol EPS)," Motilal Oswal said.
Nuvama maintained ‘BUY’ on Bajaj Auto on the stock with an unchanged target of Rs 10,340, based on 30 times FY26E core earnings and cash/investments of Rs 884 per share.
The first CNG-powered motorcycle launch is planned in June, and success of this disruptive product can provide upside to volume estimates, it said.
Choice Broking finds the stock worth Rs 9,612. Given the increasing share of premium product portfolio like Triumph, healthy growth in EV portfolio and improving profitability of chetak, it continues to maintain 'BUY' rating on the stock.
"We expect the domestic 2W segment’s recovery to continue, but a downside risk persists (exports), given higher inflation environment and geopolitical tensions. In our view, current profitability trends are likely to partly reverse, as the mix normalizes. Maintain SELL, as most positives are priced in at CMP. Valuations remain expensive at 30X FY2025E core EPS," Kotak said while suggesting a target of Rs 6,200 on the stock.