Bajaj Auto share price falls 3% after Q4 results; Should you buy, sell or hold the stock?

The 2 and three-wheeler shaper Bajaj Auto reported a nett net of ₹1,936 crore for Q4FY24, a maturation of 35.1% from ₹1,433 crore successful the ebay-ago quarter.

Bajaj Auto’s gross from operations successful the 4th ended March 2024 accrued 29% to ₹11,485 crore from ₹8,904 crore, YoY, aided by beardown home request for its motorcycles and dependable exports.

At the operational level, EBITDA successful Q4FY24 roseate 34.4% to ₹2,307 crore from ₹1,716 crore, portion EBITDA borderline improved by 80 ground points (bps) to 20.1% from 19.3%, YoY.

Read here: Bajaj Auto Q4 Results: Net nett astatine ₹2,011.4 crore, gross up 30% YoY, dividend declared; 5 cardinal highlights

Analysts judge Bajaj Auto Q4 results person been resilient, with robust home maturation compensating for sluggish exports amidst planetary challenges. 

“Notably, dynamic P&L management, merchandise premix enhancements, and operational efficiencies person bolstered margins, particularly with the palmy integration of important investments successful electrical scooters. Market stock gains successful the home segment, peculiarly successful the 125cc+ segment, alongside beardown export volumes and a surge successful EV sales, underscore the company's competitory strength," said Dhruv Mudaraddi, Research Analyst, StoxBox.

Looking ahead, helium believes the institution is well-poised to capitalize connected capableness enlargement and the continued maturation of the EV market. Moreover, with the anticipated IPOs of electrical conveyance rivals Ola and Ather starring to assemblage re-rating, Bajaj Auto's valuation multiples are apt to stay elevated, signaling a affirmative outlook for investors, helium added.

Here’s what brokerages person to accidental connected Bajaj Auto Q4 results and Bajaj Auto shares:

Motilal Oswal

Analysts astatine brokerage steadfast Motilal Oswal Financial Services expect Bajaj Auto to summation stock successful home motorcycles successful FY25, aided by a displacement successful request to the 125cc+ segment, which is its beardown market; and a steadfast motorboat pipeline. 

However, export request continues to stay uncertain owed to geopolitical headwinds. Even three-wheeler ICE request is apt to normalize implicit a precise precocious basal successful the past 2 years.

“Bajaj Auto has witnessed the astir re-rating successful the past 12 months connected the backmost of its marketplace stock gains successful the 125cc+ home motorcycles segment, improved margins, and a one-of-a-kind argumentation to reward its shareholders. After the crisp rally, however, the banal astatine ~28x/24x FY25E/26E EPS appears reasonably valued," Motilal Oswal said.

The brokerage steadfast reiterated its ‘Neutral’ standing and Bajaj Auto stock terms people of ₹8,360 per share, premised connected 22x FY26E consol EPS.

JM Financial

While home request remains healthy, export income are expected to witnesser a gradual betterment owing to macro headwinds. Margins successful the mean word are apt to gully enactment from favorable premix and higher operating leverage, JM Financial said.

Given the palmy way grounds of merchandise involution by Bajaj Auto successful the past fewer years, JM Financial remains affirmative connected the stock. It estimates gross / EPS CAGR of 16% / 19% implicit FY24-26E. 

It maintains a ‘Buy’ standing with a March 2025 Bajaj Auto stock terms people of ₹9,500 per share.

Choice Broking

Choice Broking remains affirmative connected the maturation communicative of Bajaj car supported by expanding accent connected export marketplace to amended sales; expanding premix of 125+ CC portfolio; palmy motorboat of Triumph successful caller merchandise category; assertive motorboat program successful CNG based 2W, launches successful CNG and electrical variant and expanding web for CNG and E-auto. 

Given the expanding stock of premium merchandise portfolio similar Triumph, steadfast maturation successful EV portfolio (2W+3W) and improving profitability of chetak, it continues to support its ‘Buy’ standing connected Bajaj Auto shares with a people terms of ₹9,612 per share.

Bajaj Auto stock terms has jumped 30% year-to-date (YTD), portion the banal has risen 107% successful the past 1 year. 

At 9:25 am, Bajaj Auto shares were trading 2.26% little astatine ₹8,814.05 apiece connected the BSE.

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Published: 19 Apr 2024, 09:27 AM IST