Bajaj Auto, the flagship company of Bajaj Group, is a two-wheeler and three-wheeler manufacturing company that exports to 79 countries across several countries in Latin America, Southeast Asia, and many more. Its headquarter is in Pune, India. It has acquired 48% of the KTM Brand which manufactures sports and super sports two-wheelers, which was 14% in 2007 when the company first acquired KTM. After falling from a high of 12,800 level the stock is now lying at 7600 level and looks like will weaken further due to following issues. • Revenues came in 1% below our estimates in Q3FY25; lower-than-expected ASPs. • Company indicated the RM basket could inch up moderately owing to increase in prices of rare metals. • Q3FY25: better gross margin print, partly offset by an inferior mix in export markets. • Bajaj Auto’s underperformance in the domestic 2W ICE volume segment continues. • EV 2W sales saw sharp increase, mass market scooter scale-up/network expansion. • Company expects recovery in export segment volumes on a sequential basis. • We expect earnings per share (EPS) to grow by 8.2% in FY26E and 10.6% in FY27E. • Maintain SELL as most positives are priced in at CMP (current market price).

#StockInNews#FundamentalViews#TechnicalViews#PersonalFinance#EquityResearch

2 likes