Bajaj Auto Stock Price: Global brokerage firm CLSA upgraded the rating on shares of two-wheeler maker Bajaj Auto to ‘outperform’ from ‘underperform’. Also, a target price of Rs 9,493 per share has been given. This is about 10% more than the closing price of the stock on January 8 on BSE. CLSA wrote in its note that the sharp decline in Bajaj Auto’s share price and the growth in its electric two-wheeler business have prompted the brokerage to upgrade the ratings.
Bajaj Auto shares are rising on January 9. The price on BSE jumped by almost 3 per cent from the previous close during the day. The market cap of the company has reached Rs 2.42 lakh crore. The promoters held 55 percent stake in the company by the end of September 2024.
Maintaining margin at 20% is a big achievement
The launch of more affordable variants of Chetak in December 2024 takes Bajaj Auto’s market share in the electric two-wheeler segment to more than 25%. CLSA said the company has maintained 20% margins despite expanding its electric two-wheeler operations. The brokerage considers this a major achievement. Bajaj Auto is strong in the premium segment but CLSA believes that Bajaj Auto will face increasing competition in the executive segment.
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Jefferies has reduced the target price
Meanwhile, brokerage firm Jefferies has recently reduced its target price for Bajaj Auto shares from Rs 13,400 to Rs 10,350 per share. Of the 47 analysts covering Bajaj Auto, 24 have a ‘Buy’ rating on the stock, 11 have a ‘Hold’ rating, while the other 12 have issued a ‘Sell’ call.
Bajaj Auto rose 23 percent in one year
According to BSE data, Bajaj Auto shares have strengthened by 23 percent in the last one year. It has come down by 26 percent in 3 months. The stock had seen a 52-week high of Rs 12,772.15 on September 27, 2024 on BSE. Whereas the 52-week low of Rs 6,946.90 was recorded on January 23, 2024.
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