Bajaj Auto shares rallied over 6 percent on January 27 after the company reported better-than-expected numbers in the quarter ended December 2022. The two-wheeler major reported a standalone net profit of Rs 1,491 crore for the quarter ended December 2022, clocking a 23 percent rise over Rs 1,214 crore a year ago.
At 9:30 am, the stock was quoting at Rs 3,944 per share on the National Stock Exchange, higher by 6.10 percent. Trading volumes at 7,02,660 shares were almost three times the 20-day average volumes of 2,69,188 shares.
Revenue from operations came in at Rs 9,315 crore, increasing 3 percent from Rs 9,022 crore in the corresponding quarter last year, the company said in an exchange filing on January 25.
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Here is what brokerages have to say about stock and the company post December quarter earnings:
Maintain ‘Hold' with target price increased to Rs 4,040 from Rs 3,820 earlier. Increase FY24/25 EPS estimates by 4% each to factor in higher ASPs and better mix
Remain concerned on the export side (~50% of sales) of the business given currency devaluation and unavailability of dollar, lower affordability due to price hikes and higher interest rates.
Expect company's domestic premium segment volumes to grow (similar to the industry), given stabilization in semiconductor supply.
Maintain 'Buy' with an unchanged Price Target of Rs 4,151
Though company has been facing challenges in the export market but maintaining a leadership position in its key markets. This would accelerate its volume growth when business cycle returns to normal levels
Expect company to continue to increase its market share in domestic and export markets, given its strong portfolio of premium brands and cost-effective entry-level products
Believe that company's diversified geography mix and strong presence in the domestic premium motorcycle segment allows it to support its operating performance even in weak business scenario.
Broking house has upgraded the stock to overweight due to strong earnings beat in Q3 despite weak volumes, increasing aggression on EVs and likely bottoming of exports & potential recovery in H1FY24.
The broking house also raised the target price to Rs 4,400 per share.
Rising focus on EVs & core business are likely to bottom and current valuations reflect favourable risk reward. JPMorgan raises FY23-25 EPS estimates by 8-13%, reported CNBC-TV18.
Research firm has kept ‘Overweight’ rating on the stock with a target at Rs 4,449 per share. The research firm having a ‘contrarian overweight’ on Bajaj Auto.
EV launches & successful premium cruiser launch with triumph could drive re-rating, reported CNBC-TV18
Broking firm has maintained ‘Buy’ rating and raised the target price to Rs 4,619 per share.
Lower raw material costs, better FX realisation & richer product mix led to expansion in margin.
Increase earnings estimates to 14%/15% for FY24/25 on higher revenue & margin assumptions, reported CNBC-TV18
Broking house has kept ‘Buy’ rating on the stock with a target at Rs 4,300 per share.
The Q3 volumes were down but EBITDA & PAT grew with both were 12-18% above estimates led by better-than-expected ASP & margin. Also, EBITDA/vehicle rose to an all-time high.
Jefferies believes that domestic 2-wheelers are ripe for recovery from an abnormal cyclical trough. The exports are also facing macro pressures, but company expects improvement by mid-2023, reported CNBC-TV18
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