Bajaj Auto’s share price dropped over 3% on Thursday morning as analysts raised concerns about its valuations despite strong Q1 earnings. The stock fell to ₹9,345.95 on the BSE.
Key Q1 Results:
- Net profit: ₹1,988 crore (up 19.4% YoY)
- Revenue: ₹11,928 crore (up 15.7% YoY)
- Total sales volumes: 11,02,056 units (up 7% YoY)
- Operating profit (EBITDA): ₹2,415 crore (up 24% YoY)
- EBITDA margin: 20.2% (up 130 basis points)
Analyst Opinions:
Nuvama Institutional Equities:
- Positive outlook on two-wheeler volumes with an 8% CAGR over FY24-27.
- Expecting 11% revenue and 14% EBITDA CAGR over FY24-27.
- Maintained ‘Buy’ rating with a target price of ₹12,000.
Motilal Oswal:
- Q1 results met expectations.
- Forecasts Bajaj Auto will outperform in the 125cc+ motorcycle segment.
- Lowered FY25 and FY26 earnings estimates slightly.
- Reiterated ‘Neutral’ rating with a target price of ₹8,695.
Emkay Global:
- Believes valuations are expensive.
- Raised FY26 EPS estimates by 2.6%.
- Retained ‘Reduce’ call with a target price of ₹8,300.
Foreign Brokerages:
- CLSA: ‘Underperform’ rating due to expensive valuations and export recovery concerns.
- UBS: ‘Sell’ rating.
- Macquarie: ‘Neutral’ rating.
Stock Performance:
- Down over 5% in one month.
- Up more than 38% year-to-date.
- Increased over 94% in the past year.
As of 9:40 am, Bajaj Auto shares were trading 2.54% lower at ₹9,461.35 on the BSE.
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