Motilal Oswal's research report on Bajaj Auto
Bajaj Auto (BJAUT)’s 3QFY26 earnings at INR25.5b were in line with our estimate. Favorable currency and improved mix helped offset cost headwinds and improve margins to 20.8% (in line). While a recovery in exports and a healthy ramp-up of Chetak and 3Ws are key positives, market share loss in domestic motorcycles, particularly in the crucial 125cc+ segment, remains the key concern. While BJAUT has acquired a controlling stake in KTM under a lucrative deal, its effectiveness depends on how quickly it can turn around its operations, which will remain the key monitorable going forward. At ~25.7x/23.3x FY27E/28E EPS, BJAUT appears fairly valued. We reiterate our Neutral rating with a TP of INR9,416, based on 24x Dec’27E core EPS.
Outlook
Which will remain the key monitorable going forward. At ~25.7x/23.3x FY27E/28E EPS, BJAUT appears fairly valued. We reiterate our Neutral rating with a TP of INR9,416, based on 24x Dec27E core EPS.
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