Investec has expressed confidence in Bajaj Auto, maintaining a Buy rating and a target price of ₹13,550. The brokerage is upbeat about Bajaj Auto’s multiple growth levers, including the newly launched 2025 Bajaj Chetak 35 series electric scooter, which has seen a sharp reduction in production costs. This move further strengthens Bajaj Auto’s growing foothold in the EV segment.
Other growth drivers include robust performance in the domestic two-wheeler portfolio, driven by CNG variants, the E-2W lineup, and Triumph motorcycles. Bajaj Auto is also witnessing recovery in export markets, with current run rates nearing pre-Covid levels, and a positive trajectory in the E-3W portfolio, particularly in CNG and electric variants. The stock’s valuation of 25x FY26 EPS, coupled with an estimated EPS CAGR of 15% over FY25-27 and a dividend yield of 3.5%, makes it an attractive pick.
