Bajaj Auto shares dip nearly 4% after Q1 results. Brokerages see upside potential of up to 27%
Bajaj Auto dipped by 3.7% to a low of Rs 9,295.50 on BSE after the company posted a consolidated net profit of Rs 1,942 crore, an 18% YoY increase, which led to brokerages hiking target prices to as high as Rs 12,000 for the stock.
Consolidated revenue from operations for the quarter stood at Rs 11,932 crore, reflecting a 16% rise compared to Rs 10,312 crore in the corresponding quarter of the previous financial year.
However, sequentially, the profit after tax (PAT) for the reported quarter was down 3.4% against Rs 2,011 crore reported in the January-March quarter.
Here is what brokerages say:
Nuvama: Buy| Target price: Rs 12,000
Nuvama has reiterated its buy rating on the stock with a target price of Rs 12,000.
Bajaj Auto posted a 24% YoY surge in Q1FY25 EBITDA to Rs 241 crore (vs Nuvama estimate of Rs 227 crore) on the back of better realisation and PLI incentives. 2W volume prospects remain positive and Nuvama reckons an 8% CAGR over FY24–27E led by continuing domestic growth (7%) and strong recovery in exports (10%).
The recently launched CNG model has received positive response, and a 1% and 4% contribution to volumes in FY25E and 26E respectively has been factored in by the domestic brokerage firm.
JM Financial: Buy| Target Price: Rs 11,000
JM Financial has maintained a buy call on Bajaj Auto with a target price of Rs 11,000.
Bajaj Auto EBITDA margin at 20.2%, which was in line with the estimates. 130 bps YoY improvement was driven by favorable mix, cost reduction efforts and PLI incentive. Domestic
