Bajaj Auto’s shares surged by 4% following the company’s impressive Q3 results for the fiscal year ending December 31, 2024. As of 9:28 AM, the shares were trading 4.34% higher at ₹8,762.65.
The company reported a 3.3% year-on-year (YoY) increase in net profit, reaching ₹2,108.7 crore, up from ₹2,042 crore in the same quarter of the previous fiscal year. Although the reported profit fell slightly short of the market’s estimate of ₹2,128 crore, it still reflected solid growth. Bajaj Auto’s revenue from operations climbed by 5.7%, reaching ₹12,807 crore compared to ₹12,114 crore in Q3 FY24. This growth was largely driven by strong export performance, a robust domestic green energy portfolio, and a record-breaking spares performance. However, the company’s revenue slightly missed analysts’ forecast of ₹12,963 crore.
On the operational front, the company saw an impressive 6.2% growth in EBITDA, amounting to ₹2,581 crore. The EBITDA margin stood at 20.2%, a slight improvement from 20.1% in the previous year. This exceeded market expectations of a 19.6% margin. Bajaj Auto’s stellar performance was further bolstered by its highest-ever festive retail volumes in the domestic market and a broad-based recovery in exports, which saw over 500,000 units return after nine quarters. Additionally, consistent profit growth, with EBITDA and PAT surpassing the ₹2,500 crore and ₹2,000 crore milestones, underscores the company’s strong financial health.
Brokerages provided mixed views on Bajaj Auto’s performance. Morgan Stanley maintained an Overweight rating with a target price of ₹9,951, citing the company’s strong domestic growth potential and expectations of more than 20% YoY export growth. Nuvama reiterated a Buy rating with a target of ₹10,700, highlighting sustained volume growth and a positive outlook on exports and domestic markets. Citi, however, maintained a Sell call with a target of ₹7,900, citing concerns over rich valuations and market share losses in the entry-level segment. Axis Capital also retained a Sell rating, revising its target to ₹7,550 from ₹8,000, noting that despite new launches, Bajaj Auto lost 100 basis points in market share over 9MFY25.
Bajaj Auto’s shares opened at ₹8,420.15, reaching a high of ₹8,807.00 and closing at the same low of ₹8,420.15. Over the past 52 weeks, the stock has fluctuated between a high of ₹12,774.00 and a low of ₹7,480.00.
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