Bajaj Auto shares slip 2% after Q4 results; should you buy, sell or hold?

Bajaj Auto has risen 13 percent in the last three months.

Shares of Bajaj Auto slipped 2 percent to Rs 8,703 per share on May 30 after the company posted a 6 percent rise in net profit to Rs 2,049 crore for the March quarter, beating estimates. Strong motorcycle exports and forex gains helped offset weak domestic demand.

The firm's revenue rose 6 percent to Rs 12,148 crore in Q4FY25 as compared to Rs 11,485 crore in Q4FY24, "driven by double-digit revenue growth on premium motorcycles, electric scooters and commercial vehicles, and another solid volume-led exports performance". Revenue missed double-digit growth due to the temporary suspension of KTM exports, it said.

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The two-wheeler major also said that the motorcycle market is set to clock 5-7 percent growth in FY26, and the 125cc and EV segments remain crucial. The 125cc category, which now contributes over half of all industry volumes, is expected to grow at nearly twice the pace of the overall market.

The management said the e-scooter segment is likely to grow between 20 to 25 percent in FY26. Bajaj’s own Chetak electric scooter ended FY25 on a high note, emerging as the top-selling EV in the March quarter, adding to the company’s confidence in the segment’s prospects.

Should you buy, sell, or hold the Bajaj Auto stock?

Bernstein has maintained an ‘Outperform’ rating on Bajaj Auto with a target price of Rs 11,000 per share, an upside potential of 24 percent from the last close. The brokerage highlighted the company’s ability to sustain margins irrespective of the operating environment. It noted that the management communicated a positive outlook, particularly for exports. Despite challenges like the suspension of KTM exports, Bajaj Auto delivered a respectable Q4 with stable margins, it added.

CLSA also retained its ‘Outperform’ rating with a target of Rs 10,149 per share. The company gained 12 percent year-on-year market share in the electric two-wheeler segment, reaching 25 percent in Q4, driven by the launch of a more affordable model. CLSA is building in a 7 percent volume growth in domestic two-wheelers and 12 percent in exports for FY26.

On the flipside, Jefferies has a ‘Hold’ rating on the stock with a target of Rs 8,000 per share, lower than the last closing price of Rs 8,874. While Jefferies remains positive on the company’s growth prospects in both domestic and export two-wheeler segments and appreciates its expanding EV portfolio, it flagged concerns over the decline in market share in domestic motorcycles and India’s two-wheeler exports. It expects a 13 percent EPS CAGR over FY25–28 but noted that the stock’s 26x FY26 P/E valuation is expensive.

The Pune-headquartered company's share price closed at Rs 8,874, higher by 0.3 percent from the last close on the NSE. Bajaj Auto has risen 13 percent in the last three months.