Bajaj Auto Slips Gear: Stock Falls Over 2% Even as Profits Accelerate

Bajaj Auto Share Price: The shares of the automobile company failed to impress investors after reporting a decent single-digit rise in profit levels. For the quarter ending March, Bajaj Auto reported a standalone net profit of Rs 2,049.3 crore, marking a 6% surge from Rs 1,936 crore reported during the corresponding quarter of the previous fiscal year.

At 12:30 pm, Bajaj Auto shares were trading at Rs 8,650.50, down by 2.53% on the National Stock Exchange.

The revenue from operations figure in Q4FY25 stood at Rs 12,148 crore, indicating a 5.8% year-on-year (YoY) increase from Rs 11,485 crore reported in Q4FY24.

Bajaj Auto's Ebitda figure also increased by 6.2% year-on-year to Rs 2,450.6 crore in the quarter under review. EBITDA margin witnessed a marginal rise and stood at 20.17%, compared to 20.10% recorded in the same period last year.

So far this year, Bajaj Auto shares have struggled to remain in the green territory. In the last 6-month period, the share price experienced a decline of more than 5% on the NSE.

While the results were broadly in-line with D-street estimates, Bajaj Auto experienced a loss in market share in the 2-wheelers segment.

What Analysts Say?

"While a recovery in exports and a healthy ramp-up of Chetak and 3Ws are key positives, its market share loss in domestic motorcycles, that too in its bread and butter 125cc+ segment, remains the key concern. Further, the ramp-up of its CNG bike Freedom has been slower than expected," Motilal Oswal said in its report.

The brokerage firm has maintained a 'Neutral' rating on the auto stock, with a target price of Rs 8,688

"We reckon a 7% volume CAGR over FY25–27E led by 5%/10% growth in domestic/export segments. Exports to log robust growth due to robust demand in Latin America region, recovery in KTM sales and reopening of Sri Lanka market," Brokerage firm Nuvama Institutional Equities said while maintaining its 'Buy' rating on the stock with an unchanged target price of Rs 10,700.