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Brokerages broadly agreed that Bajaj Auto’s operational momentum remains strong post Q3 results, which fuels medium-term confidence in the stock outlook. But views diverge on how much upside remains at current valuation levels.
Net Sales are expected to increase by 8 percent Y-o-Y (down 0.3 percent Q-o-Q) to Rs. 13,084.4 crore, according to PL Capital.
Revenues and operating profit of Bajaj Auto driven by a rich product mix and robust sales of spare parts
Above-average monsoon expectations and rural-focused budget reforms may lift the volumes for the segment.
Strategic initiatives to expand market share, but stock valuation elevated
The company is estimated to have sold about 10.69 lakh vehicles during January-March 2024, against 8.6 lakh units in the same quarter previous year. That is a growth of over 24 percent.
Jefferies suggests the two-wheeler segment of the company is poised for a rebound and expects a 15 percent volume CAGR in FY24-26
Net Sales are expected to increase by 29.9 percent Y-o-Y (up 12.2 percent Q-o-Q) to Rs 12,096.7 crore, according to Motilal Oswal.
The company’s revenue is expected to grow 7.05 percent year on year due to price hikes and product mixes.
While the domestic market is improving, the export market is also showing signs of recovery