Brokerages CLSA and DAM Capital have issued fresh updates on Bajaj Auto Ltd, turning cautiously optimistic on the automaker’s prospects following its Q2FY26 results. The stock last traded at ₹8,717.00.
CLSA maintained its outperform call with a target price of ₹10,604 per share, implying an upside potential of nearly 22% from current levels. The brokerage said Q2FY26 EBITDA margin came in at 20.5%, about 25 bps higher than estimates, aided by improved export realizations driven by currency tailwinds, operating leverage, and a richer product mix. However, these gains were partly offset by a 40-bps hit from material cost inflation.
CLSA added that Bajaj Auto expects two-wheeler industry volumes to rise 6–8% post-GST rate cuts, with premium motorcycle share continuing to increase. It remains cautious on domestic two-wheeler volumes, forecasting flattish growth in FY26, but sees growth catalysts from KTM restructuring, export market recovery, and upcoming product launches.
Meanwhile, DAM Capital upgraded Bajaj Auto to a neutral call with a target price of ₹9,050, indicating a 3.8% upside from the current price. The brokerage said it believes “the worst is behind” for the company, expecting export growth and customer upgradation to higher CC bikes to support performance. DAM Capital highlighted positives such as new launches across categories, strong export recovery, and healthy margins, but noted that at 22x FY27E earnings, the stock appears fairly valued, limiting further upside.
Both brokerages acknowledged Bajaj Auto’s improving export outlook and strong product mix but differ on valuation comfort, with CLSA seeing continued room for re-rating while DAM Capital turns neutral after the recent rally.
Disclaimer: The above article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice or recommendations to buy or sell any securities.
