This large-cap automaker company which is into manufacturing two-wheelers and three-wheelers and exports them to 79 countries that serve regions like Southeast Asia, Latin America, and others went up by around 4.39% after the upbeat Management Commentary.
Rajiv Bajaj assured of double-digit growth in the festive season from the +125cc category this year. The double-digit growth of the 125cc segment might not be the same case for the 100cc segment.
There were concerns from the commentary based on the recently released September results. He said he is certain to buy the stock that recently corrected around 20%. This shows the promoter’s confidence in the company which is reflected in the stock.
Rajiv Bajaj is bullish on the stock as he said “A stock that has grown 100% in last 12 months has to correct at some point, but I stand by my projection of ₹20,000 as the long-term target (for the share price). I am certainly going out and buying the stock”. Rajiv is also upbeat on the monthly exports and with products like Freedom and Chetak to grow significantly. By mid to end November to January, they will improve Chetak’s portfolio to offer more for the customers.
Despite a downgrades from few brokerages on the company after their Q2FY25 results, their focus is on long-term growth. Recently, Bajaj Auto’s executive director said that Electric vehicles now account for around 20% of the domestic revenue which also shows they are optimistic about the brand and EV.
With a market capitalization of Rs. 2,93,220 Crores, the shares of Bajaj Auto were trading at Rs. 10,500 which is up 4.39% from its previous day’s close price of Rs. 10,063.10. The stock has outperformed the Nifty and risen around 94% in the past year.
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The company’s recent Q2FY25 results showed revenue from operations increased by 11.02% QoQ, from Rs. 11,932 crores in Q1FY25 to Rs. 13,247 crores in Q2FY25. Their net profit was down by 28.68% QoQ, from Rs. 1,942 crores in Q1FY25 to Rs. 1,385 crores in Q2FY25.
Bajaj Auto Limited is a manufacturer of two-wheelers, three-wheelers, and others. They are engaged in the business of manufacturing, development, and automobile distribution. It includes commercial vehicles, motorcycles, electric two-wheelers, and its parts. Their segments involve Investments, Automotive, and Others. Bajaj motorcycles include CT, Boxer, Discover, Platina, Avenger, Pulsar, Dominar, KTM, Chetak, and Husqvarna. Their commercial vehicles include Good Carriers, Passenger Carriers, and others.
The Company caters to different geographic segments which include India and the Rest of the world. Their plants are situated in Waluj, Chakan, and Pantnagar. They have five subsidiaries overseas which are Bajaj Auto International Holdings BV, Netherlands, PT Bajaj Auto Indonesia, Bajaj Auto Spain S.L.U., Bajaj Auto (Thailand) Ltd., and Bajaj Do Brasil Comercio De Motocicletas Ltd and two Indian subsidiaries which are Bajaj Auto Consumer Finance Ltd and Chetak Technology Ltd.
According to the company’s segment as of Q2FY25, the revenue is recognized under Automotive which contributes around 95.78%, Investments around 2.90%, and the remaining 1.32% from Financing. Most of the profits arise from Automotive and Investments as financing is under loss.
Written by Santhosh S
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