Brokerages have offered mixed views on Bajaj Auto, with varying assessments of the company’s performance and prospects. Below is a summary of the brokerage ratings, target prices, and key insights:
| Brokerage | Rating | Target Price (Rs) | Key Insights |
|---|---|---|---|
| Emkay Global | Sell | 9,500 | 18% downside potential |
| Jefferies | Buy | 13,400 | 15% upside potential, Q2 EBITDA & PAT rose 21-24% YoY |
| Citi | Sell | 7,800 | Miss on ASPs & gross margins, weak festive outlook |
| Macquarie | Neutral | 11,072 | In-line Q2, gross margins disappoint, muted festive outlook |
| Morgan Stanley | Overweight | 11,389 | Slower festive demand, management expects 5% industry growth |
| Nuvama | Buy | 13,200 | Raised TP after robust Q2, 24% EBITDA growth YoY, positive outlook on 2W CAGR |
- Emkay Global: Downgrade to sell, target price at Rs 9,500
- Emkay has downgraded Bajaj Auto to a sell rating, citing concerns over the near-term outlook. The brokerage has set a target price of Rs 9,500, indicating a potential 18% downside from the current market price (CMP) of Rs 11,622.50.
- Jefferies: Maintains buy, target price at Rs 13,400
- Jefferies has maintained its buy rating on Bajaj Auto, with a target price of Rs 13,400, implying a potential upside of 15%. The company’s Q2 results showed a 21-24% YoY rise in EBITDA and PAT, though these figures were slightly below Jefferies’ estimates by 3-4%. The brokerage remains optimistic about Bajaj Auto’s 14% volume CAGR over FY24-27, driven by rising demand for two-wheelers and export recovery.
- Citi: Maintains sell, target price at Rs 7,800
- Citi continues to hold a sell rating on Bajaj Auto with a target price of Rs 7,800. The brokerage highlighted a miss on ASPs and gross margins in Q2. While Bajaj Auto’s management expressed optimism about growth in the electric two-wheeler (E2W) and CNG bike segments, Citi remains cautious, citing weak festive demand projections and challenges in export recovery.
- Macquarie: Maintains neutral, target price at Rs 11,072
- Macquarie has maintained a neutral rating on Bajaj Auto with a target price of Rs 11,072. The brokerage noted that the company’s Q2 results were in line with expectations, but gross margins were disappointing, affected by a higher share of new products in the sales mix. Additionally, Macquarie flagged a muted festive outlook, which could impact short-term growth.
- Morgan Stanley: Maintains overweight, target price at Rs 11,389
- Morgan Stanley has maintained an overweight rating on Bajaj Auto, with a target price of Rs 11,389. The brokerage pointed to a slower-than-expected festive demand, with management expecting the industry to grow at around 5%, below the market estimate of 8-10%. However, the management remains focused on maintaining margins, despite rising EV sales potentially offsetting gains from product mix.
- Nuvama: Raises target price to Rs 13,200, up from Rs 12,000
- Nuvama has increased its target price for Bajaj Auto to INR 13,200 following a robust Q2 FY25 performance, with EBITDA surging 24% YoY to INR 26.5 billion, just shy of Nuvama’s estimate of INR 27.3 billion. The firm anticipates a CAGR of 8% in two-wheeler volumes over FY24–27E, driven by 7% growth in the domestic market and 10% growth in exports. Nuvama also projects a revenue CAGR of 12% and an EBITDA CAGR of 15% over FY24–27E, maintaining a buy rating with an improved positioning in the electric and CNG segments.
Disclaimer: This article is for informational purposes only and does not provide investment advice. Investors should consult with a financial advisor before making any investment decisions. Neither the publication nor the author holds any responsibility for investment outcomes based on the information provided.
