Bajaj Auto Shares Surge 5% Following Profit Growth, Target Price Upgrade By Goldman Sachs

The share price of Bajaj Auto rose nearly 5% on Wednesday after the company reported a rise in its net profit for the third quarter of the financial year 2025. In addition, Goldman Sachs has hiked its target price on the stock while maintaining a 'buy' rating.

The standalone net profit of the Pulsar maker rose 3% year-on-year to Rs 2,108.73 crore in the quarter ended Dec. 31, 2024, as revenue increased 5.7% to Rs 12,806.85 crore due to higher exports, surging EV sales and record spares volume.

Operating income, or earnings before interest, taxes, depreciation, and amortisation rose 6% to Rs 2,580.73 crore with the margin expanding to 20.2%.

Goldman Sachs has maintained a 'Buy' rating and increased the target price to Rs 10,800 from Rs 10,700. The company’s third-quarter performance was in line with expectations, it said in its note.

The brokerage also pointed that the management anticipates the domestic two-wheeler market to grow by 6% to 8%, with the 125cc+ segments expected to grow at a faster pace. Additionally, there is a promising outlook for the e-rickshaw segment and continued export momentum in the coming quarters, added Goldman Sachs.

“The management maintains a cautiously optimistic guidance on export recovery,” Emkay Global Financial Services Ltd. said in its note. “Bajaj Auto would continue to leverage product actions with a view to outperform,” it added.

The shares of Bajaj Auto rose as much as 4.87% to Rs 8,807 apiece, the highest level since Jan. 10. It pared gains to trade 4.03% higher at Rs 8,737 apiece, as of 9:49 a.m. This compares to a 0.36% advance in the NSE Nifty 50 index.

It has risen 15.74% in the last 12 months. Total traded volume so far in the day stood at 6.5 times its 30-day average. The relative strength index was at 52.

Out of 45 analysts tracking the company, 23 maintain a 'buy' rating, 10 recommend a 'hold,' and 12 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 16.1%.