Bajaj Auto’s share price surged by 3% today, reaching a record high following JPMorgan’s positive outlook on the stock. JPMorgan has forecasted a 13% upside for Bajaj Auto, reflecting confidence in the company’s growth prospects.
According to JPMorgan, the two-wheeler industry has outperformed other segments with an 18% growth rate for FY25 year-to-date. The firm notes continued strong demand and favorable conditions, including healthy inventory levels and easier financing. They project an 8% compound annual growth rate (CAGR) for volumes from FY24 to FY27.
JPMorgan highlights Bajaj Auto’s strengths, including its robust free cash flow to profit after tax conversion and strategic investments in electric vehicles and new power-train technologies. They expect an EPS CAGR of 20% from FY24 to FY27 and anticipate the company will maintain a high payout ratio of 90%.
The brokerage has raised its price target for Bajaj Auto by 8% to ₹11,225 and increased EPS estimates for FY26 and FY27 by 3-5%.
As of 10:00 am the shares were trading 2.61% higher at ₹10,173.05 on NSE
