Bajaj Auto Ltd. shares will be in focus heading into trade on Monday after Bernstein came out with a positive note on the Indian automaker, citing favourable market position and strong demand for three-wheeler.
In its latest note, the brokerage has maintained an 'outperform' stance on Bajaj Auto while hiking target price to Rs 11,500 from Rs 11,000.
Bernstein said Bajaj Auto is "in an interesting position" as several core drivers exhibit strength while previously weak areas are being addressed. The brokerage also pointed to a combination of strong earnings growth and a favourable valuation as factors could see further room for upside.
Exports remain the headline bright spot. Recent results have been powered by stronger overseas demand and favourable currency tailwinds, with exports forming a large share of Bajaj Auto's overall two-wheeler volumes. Bernstein expects the recovery to stay broad-based in the near term, underpinned by improving conditions across key markets.
Exports remain a bright spot for Bajaj Auto, with a sharp recovery and sustained momentum expected in the near term. Meanwhile, three-wheeler exports have also rebounded returning to positive growth, say Bernstein. This has helped the company diversify growth beyond India and reinforcing its leadership in the segment as the three-wheeler exports are demonstrating significant strength.
On the electric front, Bernstein noted that the volumes of electric scooters are continuing to register robust growth.
Bajaj Auto posted a 10% year-on-year increase in its consolidated net profit for Q3FY26, largely driven by enhanced sales volume growth across markets. The company said its overall sales for Q3FY26 increased to 13.4 lakh units as against 12.24 lakh units in the year-ago period.
The Pune-based firm reported a net profit of Rs 2,196 crore for the October-December quarter of the last fiscal. Revenue from operations increased to Rs 16,204 crore for the third quarter as against Rs 13,169 crore in the year-ago period, Bajaj Auto said in a regulatory filing.
Domestic sales increased 3% to 7.31 lakh units as against 7.07 lakh units in the year-ago period while exports rose 18% to 6.1 lakh units during the same period.
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