Neutral Bajaj Auto; target of Rs 9070: Motilal Oswal

Neutral

Motilal Oswal research report on Bajaj Auto

We met with the management of Bajaj Auto (BJAUT) to understand the outlook for its key business segments. In the domestic motorcycle market, management looks to revive the lost market share, aided by new launches that include three Pulsar variants, a new 125cc model, and a few other premium models. Demand momentum is likely to sustain in the export markets due to healthy growth in the Latin American and Asian markets. In 2W and 3W EVs, BJAUT aims to achieve a leadership position on the back of another Chetak launch next year and the recently launched e-rik, Riki, respectively. BJAUT remains the only player to be on the verge of being EBITDA break-even in 2W EVs. Further, currency depreciation is likely to help drive the margin cushion in the coming quarters.

Outlook

We model a revenue/EBITDA/PAT CAGR of 12%/12%/11% for BJAUT. At ~24.1x/21.9x FY27E/28E EPS, BJAUT appears fairly valued. We reiterate our Neutral rating on the stock with a TP of INR9,070, based on 24x Sep27E core EPS.

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Bajaj Auto - 16122025 - moti