Out of the 43 analysts that have coverage on Bajaj Auto, 27 of them have continue to have a ‘Buy’ rating on the stock, nine say ‘Hold’, while seven have a ‘Sell’ rating.
Bernstein has the highest price target on the Street at ₹11,000, while Kotak Institutional Equities has the lowest target at ₹7,250.
Global brokerage firm Bernstein has an ‘Outperform’ rating on Bajaj Auto, with a price target of ₹11,000.
The brokerage wrote in its note that Bajaj Auto continues to demonstrate its ability to sustain margins across varying operating environments, a key factor behind its strong Q4 performance.
The company maintained an overall positive outlook, especially for its exports business.
It delivered a respectable Q4, maintaining margins despite headwinds such as the suspension of KTM exports, soft domestic volumes, and a rising share of electric vehicles in its product mix.
CLSA too has an ‘Outperform’ rating on Bajaj Auto, with a price target of ₹10,149.
The company reported an EBITDA margin of 20.2% in Q4, which was flat quarter-on-quarter and in line with expectations.
Revenue rose 6% year-on-year, driven by a 3% YoY increase in volumes and a 2% rise in average selling prices (ASP), led by a favorable product mix.
The brokerage said that Bajaj Auto gained 12 percentage points in electric two-wheeler (e-2W) market share year-on-year, reaching 25% in Q4, largely due to the launch of a more affordable model.
For FY26, CLSA is factoring in 7% volume growth in domestic two-wheelers and 12% growth in exports.
Jefferies, meanwhile, has a ‘Hold’ rating on Bajaj Auto, with a price target of ₹8,000.
The brokerage remains positive about the growth outlook for both domestic and export two-wheelers and appreciates the company’s expanding electric vehicle (EV) portfolio.
However, it raised concerns about the decline in Bajaj’s market share in domestic motorcycles and the drop in volume share in India’s two-wheeler exports.
Jefferies expects a 13% EPS CAGR over FY25–FY28, but mentions that the stock’s valuation at 26x FY26E P/E is not inexpensive.
Bajaj Auto declared its results after market hours on Thursday. The company also announced its highest ever dividend payout along with its earnings.
Bajaj Auto declared a dividend of ₹210 per share. Each share carries a face value of ₹10 each. Record date for the same has been fixed as June 20, 2025.
For the quarter, revenue rose 5.8% to ₹12,148 crore from ₹11,485 crore last year, also beating expectations. Analysts had projected revenue of ₹11,995 crore.
Shares of Bajaj Auto Ltd. ended with gains of 0.6% on Thursday at ₹8,899. The stock is down 30% from its 52-week high of ₹12,774, which it had surged to on September 27, 2024.
