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Bajaj Auto Shares Drop Over 3% After Q1 Results: Should You Buy?

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.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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