Bajaj Auto Shares to Watch: Strong Q2 Earnings Expected

Bajaj Auto shares are in the spotlight ahead of the company’s Q2FY25 earnings announcement later today. The well-known manufacturer of motorcycles like Pulsar, Avenger, and Chetak is expected to report a revenue growth of 24% to 29% year-on-year for the September quarter, driven by increased sales volumes and higher average selling prices (ASP). Analysts estimate revenue will be between ₹13,336 crore and ₹13,545 crore.

Profit Growth Estimates:

The adjusted net profit for the quarter is expected to rise by 22% to 24%, translating to a profit after tax (PAT) between ₹2,246 crore and ₹2,275 crore. These estimates are based on analyses from four brokerages: Kotak Institutional Equities, Nuvama Institutional Equities, Yes Securities, and Axis Securities.

Brokerage Insights:

• Kotak Equities:
  • Revenue Estimate: ₹13,545 crore (29% YoY, 13% QoQ)
  • PAT Estimate: ₹2,246 crore (22% YoY, 13% QoQ)
  • Volume Growth: Expected to increase by 16.2% YoY to 12,21,504 units.
  • Commentary: Growth driven by a surge in premium motorcycle sales and better ASPs.
• Nuvama:
  • Revenue Estimate: ₹13,488 crore (25% YoY, 13% QoQ)
  • PAT Estimate: ₹2,266 crore (23% YoY, 14% QoQ)
  • EBITDA Estimate: ₹2,727 crore (28% YoY, 13% QoQ)
  • Commentary: Revenue growth linked to strong volume performance and better pricing.
• Yes Securities:
  • Revenue Estimate: ₹13,419 crore (25% YoY, 13% QoQ)
  • PAT Estimate: ₹2,275 crore (24% YoY, 14% QoQ)
  • EBITDA Estimate: ₹2,768 crore (84 bps YoY gain)
  • Commentary: Growth attributed to improved operating leverage and product mix.
• Axis Securities:
  • Revenue Estimate: ₹13,336 crore (24% YoY, 12% QoQ)
  • PAT Estimate: ₹2,256 crore (22% YoY, 13% QoQ)
  • EBITDA Estimate: ₹2,709 crore (27% YoY, 12% QoQ)
  • Commentary: Volume growth and increased ASPs are key factors for revenue increase.

Investors are keenly awaiting the earnings report to see how Bajaj Auto performs in the current market environment.