Brokerages have come out with mixed views on Bajaj Auto after the Indian automaker reported its December quarter earnings for the ongoing financial year on Friday. The company reported a 10% year-on-year increase in consolidated net profit for Q3FY26, largely driven by enhanced sales volume growth.
Jefferies has cut the target price on Bajaj Auto after its Q3 earnings, whereas Morgan Stanley has hiked the target, citing momentum sustaining after the GST rationalisation efforts.
Meanwhile, Citi has retained its 'sell' call while keeping the Rs 8,000 target price unchanged, even offering some positive outlook on the stock despite broadly remaining bearish.
Here is what brokerages are saying on Bajaj Auto heading into Budget Day.
Brokerages On Bajaj Auto
Jefferies on Bajaj Auto
- Maintain Hold; Cut TP to Rs 9100 from Rs 9200
- Inline Dec-Q
- Positive on Indian 2W demand and expect 8% industry volume CAGR over FY26-28
- Like Bajaj's strong margin performance, but are concerned on market share dip in domestic motorcycles
Citi on Bajaj Auto
- Maintain Sell with TP of Rs 8000
- Q3FY26 Results Broadly In Line; Demand Outlook Buoyant
- Focus is on further expanding the Pulsar brand
- Positively surprised by mgmt.'s commentary on EVs
- Bajaj has broken even at Ebitda level in E2Ws
- E3W EBITDA margin is double-digits
- This is commendable esp given Bajaj has also been gaining market share in EVs
MS on Bajaj Auto
- Maintain Underweight; Hike TP to Rs 8782 from Rs 8137
- Q3 – inline quarter
- Sustaining momentum after the GST rate cut
- Expects double-digit growth in domestic motorcycles in Q4
- Introduced seven new interventions in the Pulsar portfolio and expects eight or more over the next four months
- No timeline yet for the non-Pulsar brand launch
- E2W portfolio is well covered with the launch of Chetak 25
- EV revenues are now 25% of domestic revenues
- Commodity headwind could be 50 bps in Q4
- Bajaj has passed on half of this through pricing; the currency tailwind will also offset
ALSO READ: Bajaj Auto Q3 Results: Profit Climbs 10% To Rs 2,750 Crore Amid Jump In Exports
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