Bajaj Auto Ltd.'s Q2 FY27 performance demonstrates the strength of its export franchise, premium motorcycle portfolio and three-wheeler leadership, while the EV business is progressing towards stronger profitability, says Systematix. Near-term earnings resilience has been supported by pricing, favorable currency realisations, operating leverage and PLI income despite unusually high input-cost inflation. Looking ahead, sustaining export momentum, converting capacity additions into higher volumes and reducing EV costs ahead of PLI expiry will be critical to sustaining earnings growth.
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According to Systematix, Bajaj Auto Ltd.'s Q2 FY27 performance demonstrates the strength of its export franchise, premium motorcycle portfolio and three-wheeler leadership, while the EV business is progressing towards stronger profitability.
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Near-term earnings resilience has been supported by pricing, favorable currency realisations, operating leverage and PLI income despite unusually high input-cost inflation.
Looking ahead, sustaining export momentum, converting capacity additions into higher volumes and reducing EV costs ahead of PLI expiry will be critical to sustaining earnings growth.
Post Q2 FY27 result, the brokerage broadly maintains its earnings estimate for FY27E/FY28E and retain Buy rating on the stock with target price of Rs 12,498 from earlier Rs 12,425.
A slight change in price target is attributed to change in valuation of its strategic investments in Bajaj Mobility AG.
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