In the same quarter last year, the revenue increased by 10% YOY to Rs 13,133 crore due to operation as compared to Rs 11,932 crore. The development was inspired by the benefits of export, premium motorcycle, commercial vehicles and Cheetak EV.
The Ebitda came for about Rs 2,500 crore, with Ebitda margin of 19.7%, 50 basis points quarter-on-quarters below, mainly due to a lower dollar feeling. However, the fall was largely offset by a better product mixture and operating leverage, which helped reduce the effects of commodity inflation.
The company said it maintained a healthy balance sheet and created a strong free cash flow for about Rs 1,200 crore during the quarter.
Export revenue hit a record high, which is supported by the growth of double digits led by widespread-based, volumes in Africa, Latin America and Asia. However, the MENA region remained under control among the ongoing geopolitical tensions.
Should you buy, sell or catch Bajaj Auto stock? What the brokerage says here:
Nuwama
Nuwama has maintained a ‘purchase’ rating on Bajaj Auto, although it has revised the target price of Rs 9,400 before Rs 10,700.
Nuvama maintained a positive attitude after the Q1 Ebitda beat. It estimates 7% volume Cagr at FY25-28E, which is operated by 3% domestic and 13% export growth. Exports are expected to continue, especially in Latin America and Asia. Brokerage projects at about 28% with Revenue Revenue and Ebitda at about 28% with CAGR, ROE. The target price is based on 25x SEP-27e core income.
Avidus
Avendus has maintained a ‘purchase’ rating on Bajaj Auto, while the target price has been trimmed from Rs 9,350 to Rs 9,700.
Avendus estimates ~ 5% domestic volume CAGR and ~ 12% export volume CAGR for FY25-27e. The margin by FY27E is expected to reach ~ 20%, with the development of EV portfolio expansion medium period. The value of the stock is 25.5x FY27E EPS.
JM Financial
JM Financial With a target price of Rs 8,700, maintained a ‘hold’ rating on Bajaj Auto.
JM Financial hopes that less domestic versions will be offered with high exports and better feeling. Despite trimming the estimates of Ebitda margin by 10bps for FY26e and FY27E, the brokerage maintains its hold rating with Rs 8,700, based on 22x FY27E EPS.
,Rejuvenation: Recommendations, suggestions, thoughts and opinions given by experts are their own. They do not represent the ideas of economic time)