Bajaj Auto share price rallies over 2% after upbeat Q3 results; Should you buy, sell or hold the stock?

livemint.com:

₹7,374.95 apiece on the BSE. Two-wheeler major Bajaj Auto reported a net profit of ₹2,042 crore in Q3FY24, a growth of 37% from ₹1,491 crore in the year-ago quarter. The company’s revenue from operations during the quarter rose by 30% to ₹12,114 crore from ₹9,315 crore, YoY.

Bajaj Auto posted its highest-ever quarterly EBITDA at ₹2,430 crore, which increased by 37% YoY, while its margins improved by 100 basis points (bps) to 20.1% due to better realisations, dynamic cost management and operating leverage. Read here: Bajaj Auto Q3 Results: Net profit rises 37% to ₹2,042 crore, revenue up 30% YoY; 5 key highlights Most analysts raised their earnings estimates and target price for Bajaj Auto shares after Q3 results. Here's what brokerages have to say on Bajaj Auto Q3 results and Bajaj Auto share price: Motilal Oswal Financial Services expects both domestic and export volumes of Bajaj Auto to recover in FY25 from the low base, driving a healthy earnings recovery.

It expects the company to benefit from market share gains over the long term, driven by the premiumization trend, the opportunity in exports, and the potential sizeable position in the Scooter market via EVs. However, a large part of its India profit pool (of premium motorcycle and 3Ws) is vulnerable to possible disruption from electrification. At ~26x/23x FY24E/FY25E consolidated EPS, the stock’s valuation fairly reflects the expected recovery as well as the risk of EVs, Motilal Oswal said.