Bajaj Auto shares retreat from record highs after Q4 results; here’s what brokerages suggest

Shares of Bajaj Auto – a two-wheeler and three-wheeler maker – were hovering around flatline on Wednesday in the early morning session on the BSE a day after the auto company announced its earnings for the quarter ended on March 31, 2023.

Bajaj Auto stock touched the day’s high level of Rs 4,368.95 per share, up over 0.5 per cent from Tuesday’s close of Rs 4,343.1 apiece. It quoted Rs 4,339 a share, down Rs 4.10 or 0.09 per cent at around 10:10 AM today on the BSE.

The stock touched a lifetime high for the fifth straight time on Tuesday at Rs 4,375 per share on the BSE. It’s 52-week low is Rs 3,461.30 apiece hit in May last year.

Bajaj Auto Q4 results

Bajaj Auto on Tuesday reported a marginal rise in standalone profit after tax at Rs 1,468.95 crore for the three months to March 2023 as compared to Rs 1,432.88 crore in Q4FY22.

The company's revenue from operations during the quarter under review increased 12 per cent to Rs 8,905 crore from Rs 7,974.84 crore in the January-March period of FY22, Bajaj Auto said in a release.

Brokerages on Bajaj Auto earnings

Most global brokerages are upbeat on Bajaj Auto shares a day after the auto major announced its March quarter earnings. The auto heavyweight result was above CLSA and Citi expectations, while it was in line with estimates of Goldman Sachs.

More favorable momentum in 125cc+ two-wheeler categories is expected to continue, Goldman Sachs said, adding that “If FAME 2 subsidies are not extended for electric two-wheelers, the company indicated that there could be a temporary shrinkage (in growth).”

Bajaj Auto stock history

Bajaj Auto shares have gained nearly 12 per cent in the last one year as compared to more than three per cent rise in the Nifty50.

So far in 2023, the counter has surged over 21 per cent against nearly two and a half per cent fall in the benchmark index.