Bajaj Auto Q4 Profit Soars 12%

Bajaj Auto share price retreated from all-time highs after the release of fourth-quarter results.

On April 26, the Bajaj Auto share price will highlight as the company displayed better numbers for the quarter ended March 2023.

On April 25, Bajaj Auto reported a combined net profit for the quarter ended March 2023 of Rs 1,704.74 crore, up 11.70% from Rs 1,526.16 crore in the last fiscal year.

Revenue from operation came in at Rs 8,929.23 crore, recording a growth of 11.96% from Rs 7,974.84 crore in the last quarter, the company stated in a regulatory filing.

The company’s board of directors has suggested a dividend of Rs 140 per share.

The company’s EBITDA was strong, growing 26% YoY to Rs 1,718 crore, with a margin growth of 220 bps to 19.3%. Serially, price realisation and material costs were flat with a favourable mix, driving a slight uptick.

The research firm Morgan Stanley gave the stock an ‘overweight’ rating, raising its target price from Rs 4,486 to Rs 5,063. The report says that even if Q4 volumes fell, a better product mix drove EBITDA. The research firm raises earnings per share (EPS) estimates by 8% for FY24 and 12% for FY25.

CLSA has downgraded the stock from ‘buy’ to ‘outperform’, raising its target price to Rs 4,659 per share. The Q4 results beat expectations amid richer products with higher realisations, and better forex realisations aided the impact of lower exports, resulting in a margin rise.

Motilal Oswal expects domestic and export volumes to recover in FY24 from the low base, driving solid earnings retrieval. Brokerage firms hope Bajaj Group to benefit from market share gains driven by- the premiumisation trend, export opportunities, and the possible sizeable position in the Scooter market through EVs.

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