efferies has maintained a buy rating on Bajaj Auto, with a target price of Rs 13,400, expecting a 15% upside from the current levels. The company posted a 21-24% year-on-year (YoY) rise in EBITDA and recurring profit after tax (PAT) for the second quarter, although results were 3-4% below Jefferies’ estimates.
Bajaj Auto projects 3-5% growth in motorcycle sales during the festive season and is optimistic about continued quarter-on-quarter (QoQ) improvement in exports. Jefferies sees rising Indian two-wheeler demand and a cyclical recovery in exports, which is expected to drive a 14% compound annual growth rate (CAGR) in volumes over FY24-27.
Additionally, the company is gaining market share in electric two-wheelers (E2Ws), ramping up production of CNG bikes, and expanding its capacity in Brazil.
The current market price (CMP) for Bajaj Auto is Rs 11,622.50, with markets yet to open.
Disclaimer: The information provided in this article is for informational purposes only. Stock market investments are subject to risks. Please consider this while making decisions.
