Bajaj Auto’s share price has been a topic of significant interest among investors, especially following recent market movements. As of October 17, 2024, the stock has experienced notable fluctuations, prompting discussions about its future trends and expected price targets.
Main Points
Bajaj Auto’s current share price stands at ₹11,616.95. The stock has seen a decline of over 11% recently, primarily due to disappointing quarterly results. Analysts have mixed opinions on the stock’s future trajectory, with some maintaining bullish outlooks while others express caution.
Current Price Trends and Targets
- Short-term Targets:
- Resistance Levels: Key resistance levels are set at ₹11,799.05 and ₹11,858.22.
- Support Levels: On the downside, support is expected around ₹11,438.73 and ₹11,260.52
.
- Mid-term Outlook:
- Analysts suggest a potential recovery could see the stock rise to around ₹12,496 in the coming months if market conditions improve.
- Long-term Projections:
- Long-term targets vary significantly among analysts. Some predict targets as high as ₹13,400 from Jefferies and ₹14,000 from HSBC, citing strong growth potential in exports and electric vehicle (EV) segments.
Reasons for Bearish Sentiment
The bearish sentiment surrounding Bajaj Auto can be attributed to several factors:
- Disappointing Q2 Results: The company’s recent earnings report revealed a net profit increase of only 9%, which fell short of analyst expectations. This was mainly due to lower average selling prices (ASPs) and reduced gross margins.
- Muted Festive Demand: Analysts have noted a less optimistic outlook for festive season sales compared to previous years, which could impact overall sales performance.
- Market Share Concerns: Bajaj Auto has faced challenges in maintaining its market share in the rapidly growing 125cc motorcycle segment, which could hinder growth prospects moving forward.
Brokerage Ratings and Recommendations
Different brokerages have issued varied recommendations based on their analyses of Bajaj Auto’s performance:
- Jefferies: Maintains a buy rating with a revised target price of ₹13,400, highlighting recovery potential in exports and a positive outlook for two-wheeler demand.
- Macquarie: Holds a neutral stance with a target price of ₹11,072 due to concerns over gross margins and muted festive demand expectations.
- Emkay Global: Downgraded its rating to sell with a target price of ₹9,500 after observing weak performance indicators.
- Citi: Issued a sell recommendation with a target price of ₹7,800, indicating significant downside risks based on recent performance metrics.
Market Analysis and Investor Sentiment
The overall investor sentiment towards Bajaj Auto remains cautious but mixed. While some analysts express optimism about future growth driven by a recovery in exports and new product launches in the EV segment, others highlight significant risks related to market share losses and disappointing sales forecasts.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
