Citi has reiterated its Sell rating on Bajaj Auto, setting a target price of ₹7,900 per share, implying a 6% downside from the current market price of ₹8,411.25.
The company’s EBITDA came in slightly ahead of estimates, primarily due to better gross margins. Management remains optimistic about the two-wheeler industry, expecting 6-8% YoY volume growth in the near term. The focus remains on margin improvement, but Citi pointed out that Bajaj Auto has ceded market share in the high-volume, yet highly competitive entry-level motorcycle segment.
Despite the company’s strong positioning and positive industry outlook, Citi believes rich valuations limit further upside, preventing a more constructive stance on the stock.
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