Bajaj Auto share price falls 3% after Q4 results; Should you buy, sell or hold the stock?
₹8,753.20 apiece on the BSE. The two and three-wheeler manufacturer Bajaj Auto reported a net profit of ₹1,936 crore for Q4FY24, a growth of 35.1% from ₹1,433 crore in the ebay-ago quarter.
Bajaj Auto’s revenue from operations in the quarter ended March 2024 increased 29% to ₹11,485 crore from ₹8,904 crore, YoY, aided by strong domestic demand for its motorcycles and steady exports. At the operational level, EBITDA in Q4FY24 rose 34.4% to ₹2,307 crore from ₹1,716 crore, while EBITDA margin improved by 80 basis points (bps) to 20.1% from 19.3%, YoY.
Read here: Bajaj Auto Q4 Results: Net profit at ₹2,011.4 crore, revenue up 30% YoY, dividend declared; 5 key highlights Analysts believe Bajaj Auto Q4 results have been resilient, with robust domestic growth compensating for sluggish exports amidst global challenges. “Notably, dynamic P&L management, product mix enhancements, and operational efficiencies have bolstered margins, especially with the successful integration of significant investments in electric scooters.
Market share gains in the domestic segment, particularly in the 125cc+ segment, alongside strong export volumes and a surge in EV sales, underscore the company's competitive strength," said Dhruv Mudaraddi, Research Analyst, StoxBox. Looking ahead, he believes the company is well-poised to capitalize on capacity expansion and the continued growth of the EV market.
Moreover, with the anticipated IPOs of electric vehicle rivals Ola and Ather leading to sector re-rating, Bajaj Auto's valuation multiples are likely to remain elevated, signaling a positive outlook for investors, he added. Analysts at brokerage firm Motilal Oswal Financial Services expect Bajaj Auto to gain share in domestic motorcycles in FY25, aided
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