Bajaj Auto Ltd will be announcing its March quarter results on Thursday, April 18, where the two-wheeler major is expected to post about 25-30 per cent year-on-year jump in net profit on a 20-25 per cent growth in sales. Bajaj Auto said its board will also recommend dividend, if any, for the financial year.
Bajaj Auto shares are up 33 per cent in 2024 so far. The stock has seen a 2 per cent downgrade in FY24 earnings estimates but a 3.4 per cent upgrade in FY25 earnings estimates since the December quarter results.
In its preview note, Motilal Oswal expects Bajaj Auto to report 26.8 per cent YoY rise in net profit at Rs 1,817 crore on 23.1 per cent YoY rise in sales at Rs 10,959 crore. Ebitda is seen rising 25.8 per cent YoY to Rs 2,160 crore. Motilal Oswal has a price target of Rs 8,115 on Bajaj Auto.
"While domestic volumes grew 28 per cent YoY, exports were up 19 per cent YoY, both on a low base of last year. Bajaj continues to enjoy the benefit of a rich mix in domestic motorcycles, while recovery in export markets is gradual. Margin may expand 100bp YoY led by lower input costs, improved mix and operating leverage benefits," it said.
Kotak Institutional Equities sees profit growing 31.7 per cent YoY to Rs 1,886 crore and sales 26 per cent at Rs 11,216 crore. Ebitda margin is seen at 20 per cent, up 70 basis points YoY over 19.3 per cent in the year-ago quarter.
Nuvama has upped Bajaj Auto's target price to Rs 10,340 from Rs 6,850 earlier, as a result of higher earnings assumption and application of higher valuation multiple.
"Bajaj Auto is witnessing market share gains in domestic segment, strong volume performance in exports and surge in EV volumes. We anticipate healthy demand/margin outlook and also expect valuation multiples to remain elevated due to expected IPOs of Ola/Ather, which is leading to re-rating of valuations for EV businesses," it said.
"We expect revenues to increase 26 per cent YoY led by 25 per cent YoY increase in volumes and 1-2 per cent increase in ASPs, driven by a higher mix of premium 2W and EV segments, partly offset by a lower mix of 3W segment," it said while suggesting 'Sell' on Bajaj Auto with a target of Rs 5,000.
The two-wheeler major will submit the audited financial results for the financial year ending March 31, 2024, immediately after the board meeting. Later in the day, Bajaj Auto will host a conference call for analysts and institutional investors at 06.30 pm IST.