Bajaj Auto shares slip after decent Q4: Should you buy, sell or hold?

Shares of the Nifty heavyweight Bajaj Auto declined in Friday’s trade fell up to 2.89 per cent despite posting good quarterly show for the March 2025 quarter. At the last count at around 10:43 am, shares of Bajaj Auto were down 2.75 per cent or Rs 244.25 at Rs 8,629.05 per share. Meanwhile, the stock’s day high and day low prices are Rs 8,868.1 and Rs 8,617 per share.

Bajaj Auto Q4 results

The two-wheeler major posted a 6 per cent increase in profits during the March quarter to Rs 2,049 crore.The topline of the auto major logged  5.8 per cent growth to Rs 12,148 crore, according to a regulatory filing. 

The auto manufacturer clinched a 20 per cent jump in exports during the quarter. Its domestic sales declined 8 per cent.

Both top and bottom lines were almost in line with Street estimates. 

According to Zee Business research, Bajaj Auto was estimated to log a standalone net profit of Rs 2,053 crore with revenue of Rs 12,190 crore.

Operationally, the company reported 6 per cent growth in EBITDA or earnings before interest, taxes, depreciation and amortisation (EBITDA), a key measure of operating profit. That marked an increase of 6 per cent over the year-ago period. 

The company’s margin improved by 10 basis points (bps) to 20.2 per cent, according to the filing. 

Brokerages on Bajaj Auto

Most brokerages remain positive on the stock outlook with Bernstein recommending the highest target of Rs 11,000 with an ‘outperform’ rating.implying potential gains of 24 per cent. The brokerage noted that the company continues to demonstrate its ability to sustain margin regardless of the operating environment.

Overall the brokerage communicated a positive outlook, especially in the case of exports. It further added that the company’s Q4 was respectable with margin sustaining despite headwinds from KTM export suspension. 

Jefferies, meanwhile has maintained a ‘buy’ on the stock with the target raised to Rs 8000 from the earlier Rs 7750. The brokerage added that the company posted decent Q4 led by better average selling price. The brokerage remains positive on the growth outlook for both domestic & export 2Ws. However, the concern remains about the market share dip in domestic motorcycles and decline in volume share in India’s 2W exports.

Another brokerage Goldman Sachs has reiterated its ‘buy’ on the counter with the target raised to Rs 9,600 from the earlier Rs 9,300.

On the other hand, Hong Kong based CLSA  has maintained an ‘accumulate’ rating with the target raised to Rs 10,149 from Rs 9473 earlier. As per the brokerage, the company posted In-line results and is planning to increase share in the 125cc segment. The brokerage expects domestic 2W growth of 5-6 per cent and exports at 15-20 per cent in FY26.

The brokerage has raised FY27 EPS estimates led by continued cost reduction for e-2Ws.