- Date : 27/01/2023
- Read: 3 mins
Investor tip for Bajaj Auto shares after 23% jump in net profit
Bajaj Auto published its quarterly results, and its share prices jumped in line with the increased profit. The company overtook market expectations which gained investor confidence. Here’s a look at how the company performed in the third quarter of the financial year 2022-23.
Q3 results of Bajaj Auto
- Standalone net profit reported at Rs.1491 crores. This is a 23% jump over the net profit of Rs.1214 crores reported in Q3 of the financial year 2022-23.
- Revenue from operations jumped 3% YoY (Year on Year) from Rs.9022 crores to Rs.9315 crores.
- Record high EBITDA of Rs.1777 crores.
- EBITDA margins jumped to 19.1% against 15.6% last year.
- 1% decrease in overall expenses.
How have the shares performed?
On Friday, 27th January, the stock prices jumped 6% after the results were published. The trading volumes also jumped thrice compared to the 20-day average at 702,660 shares.
Expert speak
Following the impressive performance by the automaker, leading brokerage firms made recommendations for investors. Here’s what they said.
- ‘Buy’ rating with target price ranging from Rs.4151 to Rs.4619
Multiple brokerage companies maintained a ‘Buy’ rating on the stock. They observed that Bajaj Auto maintained its position in the primary markets despite challenges in the export market. As the market returns to normal, the company has a good scope for growth. Given the range of premium and pocket-friendly entry products, Bajaj Auto might increase its market share in India and abroad.
Even in a weak business cycle, the company will be able to maintain its profitability, given its share in the premium motorcycle market.
Other firms believed that enhanced FX realizations and reduced raw material costs would contribute to profitability. Moreover, since EBITDA and profits jumped considerably, the company is financially strong.
Related - Here are the top sectors in the stock market to invest in.
- ‘Hold’ rating with a target price of Rs.4040
One firm wants investors to hold onto the shares as the company is expected to deliver good profits in the future too. Some of the concerns of the brokerage firm include the devaluation of INR, price hikes, exports, and increased interest rates.
- ‘Overweight’ rating with a target price of Rs.4400 to Rs.4449
Despite low volumes, the impressive quarterly performance has earned Bajaj Auto’s scrip an ‘Overweight’ rating from some experts. As exports might bottom out, the company might generate revenue from an aggressive EV sector. The risk-reward trade-off is also positive.
As experts give a different rating on the stock, you do your own research. Assess the company’s fundamental and technical metrics, your risk appetite, and your portfolio’s requirement, and then make a choice. Bajaj Auto is an established automaker, and if you have a long-term horizon, you can benefit from the stock’s addition to your portfolio.
Related - Here are some top EV stocks to buy as the EV industry is poised to grow.
Bajaj Auto published its quarterly results, and its share prices jumped in line with the increased profit. The company overtook market expectations which gained investor confidence. Here’s a look at how the company performed in the third quarter of the financial year 2022-23.
Q3 results of Bajaj Auto
- Standalone net profit reported at Rs.1491 crores. This is a 23% jump over the net profit of Rs.1214 crores reported in Q3 of the financial year 2022-23.
- Revenue from operations jumped 3% YoY (Year on Year) from Rs.9022 crores to Rs.9315 crores.
- Record high EBITDA of Rs.1777 crores.
- EBITDA margins jumped to 19.1% against 15.6% last year.
- 1% decrease in overall expenses.
How have the shares performed?
On Friday, 27th January, the stock prices jumped 6% after the results were published. The trading volumes also jumped thrice compared to the 20-day average at 702,660 shares.
Expert speak
Following the impressive performance by the automaker, leading brokerage firms made recommendations for investors. Here’s what they said.
- ‘Buy’ rating with target price ranging from Rs.4151 to Rs.4619
Multiple brokerage companies maintained a ‘Buy’ rating on the stock. They observed that Bajaj Auto maintained its position in the primary markets despite challenges in the export market. As the market returns to normal, the company has a good scope for growth. Given the range of premium and pocket-friendly entry products, Bajaj Auto might increase its market share in India and abroad.
Even in a weak business cycle, the company will be able to maintain its profitability, given its share in the premium motorcycle market.
Other firms believed that enhanced FX realizations and reduced raw material costs would contribute to profitability. Moreover, since EBITDA and profits jumped considerably, the company is financially strong.
Related - Here are the top sectors in the stock market to invest in.
- ‘Hold’ rating with a target price of Rs.4040
One firm wants investors to hold onto the shares as the company is expected to deliver good profits in the future too. Some of the concerns of the brokerage firm include the devaluation of INR, price hikes, exports, and increased interest rates.
- ‘Overweight’ rating with a target price of Rs.4400 to Rs.4449
Despite low volumes, the impressive quarterly performance has earned Bajaj Auto’s scrip an ‘Overweight’ rating from some experts. As exports might bottom out, the company might generate revenue from an aggressive EV sector. The risk-reward trade-off is also positive.
As experts give a different rating on the stock, you do your own research. Assess the company’s fundamental and technical metrics, your risk appetite, and your portfolio’s requirement, and then make a choice. Bajaj Auto is an established automaker, and if you have a long-term horizon, you can benefit from the stock’s addition to your portfolio.
Related - Here are some top EV stocks to buy as the EV industry is poised to grow.
