Geojit Financial Services research report on Bajaj Auto
Bajaj Auto Ltd (BAL) is India’s second-largest motorcycle manufacturer. It is India’s largest three-wheeler maker. The company is based in Pune and has plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar (Uttarakhand). It is the country’s largest exporter of motorcycles and three-wheelers. In Q4FY26, standalone revenue grew 31.8% YoY to Rs. 16,006cr, driven by strong volume expansion, sustained export momentum and a favourable product mix. Total sales volume rose 24.3% YoY to 1,371,058 units, due to strong growth across both the domestic and export markets. Domestic volume grew 24.1% YoY to 760,846 units, aided by a strong recovery supported by GST rate rationalisation. Export volume grew 24.7% YoY to 610,212 units. EBITDA surged 35.6% YoY to Rs. 3,323cr, with margin expanding 60bps YoY to 20.8%, supported by favourable currency realisations, better operating leverage (due to higher volume), a richer product mix (helped offset commodity inflation) and higher discretionary spend. Reported profit after tax increased 34.0% YoY to Rs. 2,746cr, driven by improved operating performance on the back of stronger revenue, and included an exceptional gain of ~Rs. 35cr.
Outlook
Hence, we upgrade our rating on the stock to BUY from HOLD with a rolled-forward target price of Rs. 11,735, based on 26x FY28E adjusted EPS.
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Bajaj Auto - 0106026 - geo