Here's why Bajaj Auto shares fell over 3% on Oct 15; check details here

Shares of Bajaj Auto fell as much 3.51 per cent at Rs 11,475 per share on the BSE in Tuesday’s intraday trade. The stock price saw profit booking ahead of the company’s quarter two results for the financial year 2024-25 (Q2FY25) which are scheduled to be released on Wednesday, October 16, 2024. 

The weakness in the stock price also comes amid sectoral weakness as two-wheelers experienced 4.7 per cent year-on-year (Y-o-Y) growth in sales volume in Q2FY25. 

Also Read: Q2 result preview: 2Ws and 3Ws likely drivers of auto sector growth

Individually, analysts are optimistic about major revenue growth for Bajaj Auto, driven by robust volume increases and effective pricing strategies. The street estimates suggest a revenue increase of up to 25 per cent year-over-year, largely fuelled by strong domestic and export sales of two-wheelers.

 

That apart, the company has seen a major shift towards premium motorcycles, which is expected to enhance average realisations by approximately 7.2 per cent. 

In September 2024, Bajaj Auto reported a 20 per cent jump in vehicle sales, totaling 469,531 units, compared to 392,558 units sold in September 2023.

Domestic sales surged 23 per cent to 311,887 units, while exports rose 13 per cent year-over-year to 157,644 units. Two-wheeler sales for the month increased 22 per cent to 400,489 units, up from 327,712 units in the same period last year.

Apart from that, on the bourses, Bajaj Auto shares have surged over 32 per cent this year-to-date (Y-T-D). In comparison, BSE Sensex gained over 12 per cent.

According to brokerages some key factors to monitor include the demand outlook in both domestic and international markets, along with initiatives in CNG and e-mobility.

Also Read: Bajaj Auto Q2FY25 preview: Revenue may climb upto 25% YoY on strong volumes

Bajaj Auto has a total market capitalisation of Rs 3.21 trillion. Its shares are trading at a price to earnings multiple of 42.55 times and at an earning per share of Rs 279.47. 

At 12:45 PM, the stock price of the company slipped 3.16 per cent at Rs 11,517.20 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.18 per cent to 81,823.27 level.