Bajaj Auto Shares Wobbly After Q1: Buy, Sell Or Hold?

Shares of Bajaj Auto were wobbly in early trade on Wednesday, a day after the company posted its earnings for the quarter ended June.

What Happened: The auto major reported a 41.33% jump in consolidated profit to ₹1,644.1 crore, as compared to the ₹1,163.3 crore profit it reported in the June quarter of 2022. The number was mostly in line with analyst estimates of around ₹1,600 crore.

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The company’s revenue from operation for the quarter stood at ₹10,311.3, up 29% as compared to the ₹8,004.9 crore revenue it posted in the same quarter last year. The company reported its highest-ever quarterly EBITDA at ₹1,954 crore. EBITDA margin stood at 19%.

Reacting to the results, Morgan Stanley maintained its “overweight” rating for the stock with a price target of ₹5,063- indicating an around 4.5% upside from the stock’s last closing price of ₹4,848.95. The research firm said the company’s Q1 numbers were in line with estimates and the export business is also seeing gradual recovery. The firm highlighted that the progress of EVs and Triumph would be key factors to monitor going forward.

Jefferies also maintained its “buy” call on the stock with a price target of ₹5,560. The firm said that the company delivered a strong performance in tough times. However, it expressed concern over the company’s market share losses in exports and the premium bikes segment.

Price Action: Bajaj Auto’s share price was up 0.09% to trade at ₹4,853.50 on Wednesday morning.

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Posted In: EarningsNewsPrice TargetReiterationAnalyst RatingsBajaj Auto