Bajaj Auto stock jumps over 2% to hit new record high, crosses ₹11,000 mark for the first time—Here’s why

Continuing their triumphant run for the ninth successive trading session, shares of Bajaj Auto, one of the leading manufacturers of two-wheelers and three-wheelers, crossed the ₹11,000 mark for the first time in today's trade to hit a new all-time high of ₹11,154 apiece by gaining 2.41 percent.

This surge followed the company's August sales report, which exceeded analysts' expectations, reporting a 16 percent year-on-year increase in total vehicle wholesales, including exports, totalling 397,804 units for August.

Domestic sales, which include commercial vehicles, grew by 24 percent to 2,53,827 units in August, up from 2,05,100 units in the same month last year. Exports saw a 5 percent rise, reaching 1,43,977 units compared to 1,36,548 units shipped in August 2023, according to the company's exchange filing.

Year-to-date, Bajaj Auto has sold 1,583,636 units in the domestic market, reflecting a 10 percent increase from the 1,443,201 units sold during the same period last year.

The company's management anticipates a 6 percent-8 percent growth in the 2-wheeler (2W) industry for FY25. The 125 cc and higher segments are expected to see faster growth, which will likely increase Bajaj Auto's market share. The company plans to expand its E2W stores from 250 in Q1 FY25 to 500 by Q2 FY25. This growth is supported by the launch of an affordable model, an expanded network, and reduced prices.

For FY25, the company has allocated ₹7-8 billion for capital expenditure, with a significant portion dedicated to developing electric vehicle capabilities.

Meanwhile, a new plant in Brazil began production in June 2024, with an initial capacity of 20,000 units per year, expandable to 50,000 units. The company's Dominar model has seen strong traction, and Brazil is projected to become one of the top three international markets in the medium term. 

Exports of the Qute model to Egypt began in Q1 FY25, with 500 units shipped.

The company's electric 3-wheeler (E-3W) is now available in approximately 200 cities, covering 70% of the E-3W market. In Q1FY25, E-3W sales reached 9,350 units.

Expanding eco-friendly portfolio

Recently, the company introduced the world’s first CNG motorcycle, Freedom. Additionally, the company plans to launch another CNG two-wheeler by the end of this fiscal year. As per media reports, the company will also showcase ethanol-based two and three-wheelers this month.

The stock has surged significantly, driven by robust sales and strong financial performance in recent quarters. From trading at ₹3,661 per share in February 2023, it has soared 203% to its current trading price of ₹11,126.

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