Bajaj Auto share price rises 5% post Q3 results: Should you Buy, Sell or Hold the stock?

Stock Market Today: Bajaj Auto Ltd share price gained 5% in the morning trades post Q3 results that were declared after the market hours on Tuesday:

Bajaj Auto Q3 Results

For the fiscal third quarter that ended in December (Q3FY25), Pune-based two-wheeler manufacturer Bajaj Auto Ltd. recorded a 3.3% year-over-year increase in its net profit (attributable to owners) to ₹2,108.7 crore. In the same period last year, the Auto major had declared a profit of ₹2,042 crore.

Analysts views: Should you Buy, Sell or Hold?

Jefferies India Private Ltd post Q3 results said that Bajaj auto reported a Modest Growth but In-line Q3 earnings performance

Bajaj's Q3 Earnings Before Interest, tax, Deprecation and Amortisation (Ebitda0 and net profit rose just 3-6% YoY, although were in line with Jefferies Estimates. Bajaj expects 6-8% growth for motorcycle industry, and sees a strong 20%+ growth in exports in the near term. Jefferies analysts remain positive on growth outlook for both domestic and export two wheelers and expect 12% volume and 14% Earnings per share annual growth (CAGR) for Bajaj over FY25-27 estimated. Jefferies has fine-tuned estimates and retain their Buy ratings, although they said prefer Eicher Motors and TVS Motor Company Ltd within the two wheelers space.

Bajaj Auto reported a decent quarterly performance, which was largely anticipated by the market, given the decline in domestic twowheeler sales during the quarter and slugged production, said Sagar Shetty, Research Analyst, StoxBox. The buoyancy in the topline was supported by three wheelers volumes and increased export contribution; however, a weaker product mix was the main pressure point during the three-month period, said Shetty.

An improved Average Selling Price , with a 6% YoY growth, was one of the key pillars that enabled the company to help maintain its operational margins as per Shetty. The benefits of premiumisation largely reflected its products like Speed 400 and Duke 200/250, clocking in the highest-ever retail sales, with the expansion of its touchpoints boding well for the company. The company also experienced a five-fold surge in its e3W volumes, with market share expanding to a new quarter high (3x YoY), supported by an extended network from 600 to over 850 touchpoints. Chetak maintained its robust momentum, with volumes growing by ~2.5x YoY and an exit market share of 25% (+1100 bps).

The company had mentioned improvement in its margin structure in the previous quarter’s concall, which was expected to materialize post the launch of the upgraded Chetak in November, said Shetty. Follow-up on the commentary would be key to gauge the profitability of its Electric Vehicles portfolio. Moving forward, management's comments on the CNG portfolio pipeline, production expansion plans, and margin improvement guidance will be key areas to watch, said Shetty

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