Deven Choksey report on Bajaj Auto
Bajaj Auto’s consolidated revenue from operations grew 18.8% YoY (+19.8% QoQ) to INR 1,57,347 Mn, beating our estimates, led by broad-based strength across exports, premium motorcycles, and commercial vehicles. Export volumes surged 24% YoY, delivering the highest-ever quarterly export revenue, aided by strong traction in LATAM, Asia, and Africa, with notable contributions from Colombia, Mexico, Sri Lanka, and the Philippines. Domestic two-wheeler volumes improved sharply during the festive period, supported by GST rate cuts and the strong performance of the Pulsar and KTM portfolios. Average realizations increased 12.3% YoY (+3.6% QoQ) to INR 1,17,869, supported by favorable product mix, richer exports, and higher spares contribution.
Outlook
We have roll-forwarded our valuation basis to Sept’27 estimates. We value Bajaj Auto at 23x Sept’27 EPS, implying a target price of INR 9,770. We reiterate our “ACCUMULATE” rating on the stock
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