Bajaj Auto shares jumped 2.65 per cent or ₹222.60 to ₹8,621 on the NSE today at 10.35 am, following the release of its third-quarter results. The two-wheeler manufacturer reported a slight decline in net profit to ₹2,018.7 crore compared to ₹2,042 crore in the same quarter last year, missing analyst estimates of ₹2,128 crore.
The company’s revenue increased to ₹12,807 crore from ₹12,114 crore year-on-year, while EBITDA came in at ₹2,581 crore with a margin of 20.2 per cent, exceeding market expectations of 19.6 per cent.
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Leading brokerages offered divergent views on Bajaj Auto’s prospects. While Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹9,951, citing positive management outlook on domestic motorcycle growth and export recovery, Citi and Axis Capital recommended ‘Sell’ with target prices of ₹7,900 and ₹7,550 respectively, pointing to rich valuations and market share concerns.
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Management expressed optimism about domestic motorcycle industry growth of 6-8 per cent and export growth exceeding 20 per cent going forward. The company also reported that its EV portfolio, including PLI gains, has turned EBITDA positive, with the new Chetak 35 platform contributing to margin improvement.
