Bajaj Auto shares surged by 2.65 per cent or ₹222.60 to ₹8,621 on the NSE at 10.35 am today following the release of its third-quarter results. The two-wheeler manufacturer recorded a slight decrease in net profit to ₹2,018.7 crore from ₹2,042 crore in the same quarter last year, falling short of analyst expectations of ₹2,128 crore.
In terms of revenue, the company saw an increase to ₹12,807 crore from ₹12,114 crore year-on-year. Additionally, the EBITDA stood at ₹2,581 crore with a margin of 20.2 per cent, surpassing market projections of 19.6 per cent.
Various brokerage firms offered mixed opinions on Bajaj Auto’s outlook. While Morgan Stanley upheld an ‘Overweight’ rating with a target price of ₹9,951 based on the positive management outlook on domestic motorcycle growth and export recovery, Citi and Axis Capital recommended a ‘Sell’ rating with target prices of ₹7,900 and ₹7,550 respectively, citing concerns over rich valuations and market share.
Management expressed confidence in the domestic motorcycle industry’s growth of 6-8 per cent and anticipated export growth to exceed 20 per cent in the future. The company also highlighted that its EV portfolio, including PLI gains, has turned EBITDA positive, with the new Chetak 35 platform contributing to margin enhancement.
The market responded positively to Bajaj Auto’s results, with shares witnessing a rally despite the mixed outcomes. The stock closed higher on the back of these developments.
