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Bajaj Auto shares fall ahead of Q1 earnings, here's what to expect

Bajaj Auto shares fall ahead of Q1 earnings, here's what to expect

Bajaj Auto stock fell 1.24 per cent to Rs 3,967 against the previous close of Rs 4,017.50 on BSE.

  Bajaj Auto shares trade higher than the 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages. Bajaj Auto shares trade higher than the 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages.

Shares of Bajaj Auto were trading lower ahead of the firm's June quarter earnings set to be announced today.  Bajaj Auto stock fell 1.24 per cent to Rs 3,967 against the previous close of Rs 4,017.50 on BSE. Bajaj Auto stock has been falling for the last three sessions.

The auto shares trade higher than the 20-day, 50-day, 100-day and 200-day moving averages but lower than the 5-day moving averages.

In a year, the stock has gained 3.7 per cent and has risen 22.37 per cent in 2022. Total 4,435 shares of the firm changed hands amounting to a turnover of Rs 1.76 crore on BSE. The market cap of the lender fell to Rs 1.15 lakh crore on BSE.

Bajaj Auto stock hit a 52-week low of Rs 10,777 on July 1, 2022 and a 52-week high of Rs 4,091.90 on July 22, 2022 and a 52-week low of Rs 3,028.35 on December 20, 2021.

The auto major is likely to post a 9.4 per cent rise in Q1 net profit to Rs 1,161.1 crore. However, profit is seen falling 2.9 per cent on a quarter-on-quarter-basis (Q-o-Q), according to YES Securities.

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Revenue is seen rising 8 per cent to Rs 7,974.3 crore in the last quarter.

"Overall volume for the quarter de-grew at 4 per cent QoQ, offset by realizations growth of 5 per cent QoQ at Rs 85.4k/unit. This should result in flattish revenue growth of 0.4 per cent QoQ at Rs 7,970 crore. We expect margins to contract 50 bps QoQ at 16.3 per cent due to higher RM impact.  We believe Bajaj Auto is relatively better placed to face margin headwinds due to higher exports mix and lean cost structure," added YES Securities.  

Net profit is likely to fall 0.9 per cent (YoY) to Rs 1,051.2 crore in the first quarter against Rs 1,061.2 crore in the June quarter of previous fiscal, according to Kotak Institutional Equities (KIE).

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Net profit is seen declining 15.8 per cent on a QoQ basis, according to the brokerage's estimate.

Sales are likely to remain unchanged at Rs 7,386.2 crore on a YoY basis. On a QoQ basis, sales may fall 7.4 per cent from Rs 7,974.8 crore.

"We expect EBITDA margin to decline by 150 bps qoq in 1QFY23 due to RM headwinds on account of higher steel and aluminium prices partly offset by richer product mix (higher mix of export 2W segment)," said Kotak Institutional Equities.

Published on: Jul 26, 2022, 11:27 AM IST
Posted by: Aseem Thapliyal, Jul 26, 2022, 11:19 AM IST