Nuvama has reiterated its ‘Buy’ rating on Bajaj Auto, with a target price of ₹10,700, implying a 27.2% upside from the current market price of ₹8,411.25.
The brokerage highlighted that EBITDA came in slightly above estimates, benefiting from better pricing, scale advantages, PLI incentives, and cost savings. It also noted management’s positive volume outlook for the next 3–6 months, which is expected to be driven by export growth exceeding 20% and domestic growth of 6–8%.
Additionally, Nuvama expects 2Ws to clock a 7% volume CAGR over FY25–27E, while revenue and EBITDA CAGR are projected at 11% and 12%, respectively, over the same period. The company is also estimated to maintain an average return on equity (RoE) of around 35%.
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