Bajaj Auto’s shares experienced a nearly 3% decline in early trading on Friday following the release of its fourth-quarter earnings for FY24. The company reported a net profit of ₹1,936 crore for Q4FY24, marking a 35.1% increase from the corresponding quarter of the previous year. Revenue from operations also saw a significant rise of 29% to ₹11,485 crore, attributed to strong domestic demand for motorcycles and steady export performance.
The company’s EBITDA for Q4FY24 increased by 34.4% to ₹2,307 crore, with an improved EBITDA margin of 20.1%. Analysts view Bajaj Auto’s performance as resilient, citing factors such as effective profit and loss management, product mix enhancements, and operational efficiencies. They emphasize the company’s competitive strength in domestic market share, particularly in the 125cc+ segment, along with positive prospects in the electric vehicle (EV) market.
Looking forward, analysts anticipate Bajaj Auto to benefit from capacity expansion and continued growth in the EV sector. Despite geopolitical uncertainties affecting export demand and normalization expected in the three-wheeler ICE segment, the company’s outlook remains positive.
Brokerage firms offer mixed perspectives on Bajaj Auto’s stock. While Motilal Oswal maintains a ‘Neutral’ rating with a target price of ₹8,360 per share, JM Financial holds a ‘Buy’ rating with a target of ₹9,500 per share. Choice Broking also maintains a ‘Buy’ rating, setting a target price of ₹9,612 per share.
Despite a year-to-date increase of 30% and a remarkable 107% rise over the past year, Bajaj Auto’s shares were trading 2.26% lower at ₹8,814.05 apiece on the BSE as of 9:25 am.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
