Bajaj Auto Shares Race Up 4% After Q2 Print: Here's Why

Bajaj Auto’s share price jumped back in the green on Thursday morning as the company’s results for the September quarter impressed analysts and investors.

What Happened: The automobile giant posted a 20% increase in standalone net profit, reaching ₹1,836 crore for the quarter ended September, as compared to the ₹1,530 profit it booked in the same quarter last year. The bottom line managed to surpass the consensus forecast of around ₹1,750.

Standalone revenue from operations also showed a 5.6% growth, reaching ₹10,777 crore, from ₹10,202.8 crore in the corresponding quarter of last year. The number was slightly below estimates of around ₹10,900 crore.

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EBITDA also experienced robust growth of 21.3% year-over-year, reaching ₹2,132.9 crore. The EBITDA margin came in at 19.79%. Earnings per share for the quarter was at ₹64.9.

The company’s two-wheeler sales decreased by 13.5% year-on-year to 8.82 lakh units. Conversely, commercial vehicle sales surged by over 30% year-on-year to 1.72 lakh units.

Analyst Reactions: Morgan Stanley maintained its “overweight” rating for the stock with a price target of ₹5,449. The research firm said that the company posted another strong quarterly result. BofA Securities also maintained its “buy” rating for the stock raising the target price to ₹5,950 from ₹5,550. The brokerage also said that the company had a good quarter and exports should improve gradually.

Price Action: Bajaj Auto’s share price was up 4.50 to trade at ₹5,358.55 as the markets opened on Thursday.

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