Bajaj Auto shares tumble 3% in a weak market despite good Q4; brokerages divided

Bajaj Auto shares in Friday's session tumbled as much as 3 per cent to day’s low of Rs 8753.2 amid broader market weakness. This is despite a good Q4 show by the 2-wheelers major which saw brokerage raise target on the counter.

For the January-March period, Bajaj Auto posted a 29 per cent increase in revenue, with profits also inching higher by 35 per cent. Margins at the company also logged a decent increase of 20.1 per cent.

At around 9:39 am, shares of the company were knocked lower by 2.48 per cent to Rs 8794.05 per share.

Here’s what global brokerages say on the stock after its Q4 show

Jefferies maintains a ‘buy’ on the stock with a raised target of Rs 10,500.  The brokerage said that company’s EBITDA & PAT rose 34-35% YoY & was inline. The brokerage raised FY25-26 EPS by 4 per cent.

JP Morgan on Bajaj Auto maintained an overweight call with a target of Rs 10000. The brokerage said the company’s Q4 is 5 per cent ahead of expectations. The management commentary during 4Q remained buoyant. The brokerage raised its FY25-26 EPS by 5-6 per cent.

Citi, on the other hand, is bearish on Bajaj Auto and has signalled a ‘sell’ with a slashed target of Rs 5500. The brokerage maintains that the company’s Q4 has been ahead of estimates, driven by better than-expected realisations. Also, it added that the company’s focus is on gaining market share in 125cc+ bikes, aided by new model launches.