Bajaj Auto’s stock price advanced 4.11% in the last 5 days, 11.75% in the last one month and a whopping 28.46% in the last six months.
Bajaj Auto stock has been on a ride over the past one year, offering more than 66% returns to investors year to date. The share price rose 0.70% to hit a fresh 52-week high of Rs 5,971.95 intra-day Tuesday. It advanced 4.11% in the last 5 days, 11.75% in the last one month and a whopping 28.46% in the last six months.
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Abhishek Gaoshinde, Deputy Vice President Research at Sharekhan by BNP Paribas, highlighted multiple factors driving Bajaj’s stock price. These include sustaining margins above 19% for the last 4 quarters, a soft raw material cost trend, exports bottoming out, and plans to launch multiple electric two-wheelers. Abhishek Gaoshinde further added that the launch of electric 3-wheelers (E3W) has worked in favour, as it is not a margin-dilutive business. Moreover, the company’s entry into the iconic premium brand segment, through the launch of the Triumph 400 cc, has provided an edge to the stock.
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Another leading factor that is attributed to the surge is the demand during the festive season and the marriage season that is underway. According to a BNP Paribas report, the automotive sales during the ten days of the festive period, which included Dhanteras and Diwali, contributed almost one-third of the overall festive demand. The growth in the final phase of the festivals (November 5-15 Nov) was stronger for most of the sub-segments of the industry compared with that in the same period of last year’s festive season (17-25 Oct 2022).
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Besides this, the auto company reported a growth of 6% YoY in their second-quarter revenue in FY24 to Rs 10,777 crore. The company’s quarterly EBITDA surpassed the Rs 2,000 crore milestone for the first time at Rs 2,133 crore, registering a YoY growth of 21% during the same period.
