Morgan Stanley has reiterated its Overweight rating on Bajaj Auto, projecting an 18% upside with a target price of ₹9,951 per share. The brokerage noted that the company’s standalone EBITDA came in broadly in line with estimates.
Management remains optimistic about the domestic motorcycle industry, expecting sustainable growth of 6-8%, with the 125cc+ segment anticipated to grow at a faster pace. The company also expects exports to expand by over 20% YoY in the coming quarters, indicating a strong recovery in international markets.
Bajaj Auto’s electric vehicle (EV) portfolio, including benefits from the Production-Linked Incentive (PLI) scheme, is now EBITDA positive, marking a crucial milestone in its EV transition. Within the two-wheeler segment, the new Chetak 35 platform is playing a key role in supporting margin improvement.
At the current market price of ₹8,411.25 per share, Morgan Stanley sees Bajaj Auto well-positioned for growth, driven by strong export recovery, robust premium segment demand, and improving EV profitability.
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