Bajaj Auto share price hits all-time high, experts expect further upside

livemint.com:

Bajaj Auto share price jumped over 5 per cent to hit its fresh all-time high of ₹5,093.95 in morning trade on NSE on Friday (September 15). The stock opened at ₹4,894.90 against the previous close of ₹4,844.50 and jumped to its fresh record high with over 8 lakh shares changing hands on NSE. The stock saw sharp gains today amid reports that global brokerage firm BoFA Securities upgraded the stock to a ‘buy’ from a 'neutral'.

CNBC-TV18 reported that BoFA Securities upgraded Bajaj Auto stock to a ‘buy’ from a 'neutral' earlier and raised the target price also to ₹5,550 from ₹5,100 earlier, which is nearly 15 per cent upside from the stock's close of ₹4,844.50 on Thursday on NSE. BoFA Securities, as reported by CNBC-TV18, believes multiple growth drivers are at play for Bajaj Auto. "The growth would be mainly driven by 2Es - exports and electric - which are the main reasons for valuation and re-rating.

Believe all business segments are now well set for positive growth in F25 with exports turning the corner," CNBC-TV18 reported BoFA Securities saying so about Bajaj Auto. Sharp gains in Bajaj Auto share price had a rub-off effect on other auto stocks too, as it boosted the Nifty Auto index which rose over a per cent in morning trade. The stock has significantly outperformed the BSE Auto index and the equity benchmark Nifty in the last one year.

Shares of Bajaj Auto have jumped nearly 35 per cent while the Nifty Auto index and Nifty50 have gained nearly 23 per cent and about 13 per cent, respectively, in the last one year. If we see the PE (price-to-earnings ratio) of the stock, it is currently at 21 which is above the median PE of about 18. PB (price to book value) of the stock at present is 4.67 which is also above the