Bajaj Auto, a leading two-wheeler manufacturer and the flagship company of the Bajaj Group, has seen its shares perform exceptionally well on the exchanges this year, gaining 57.3% year-to-date. This marks the stock’s best annual performance since 2010.
The company’s shares have been on a continuous rise since January 2023, with no significant pullbacks. Over the past ten months, the stock has ended eight months in positive territory. In today’s trade, the stock registered a new all-time high of ₹5,676 each.
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This stellar performance is attributed to strong financial performance, improved sales and positive market sentiments for the auto industry.
On November 1, Bajaj Auto reported a 19% increase in total sales, registering 4,71,188 units in October 2023 compared to 3,95,238 units in the same month of 2022. The total two-wheeler sales witnessed a 19% growth , with 4,08,144 units sold in October 2023 versus 3,41,903 units sold in October 2022.
In commercial vehicles, the company sold 63,044 units in the domestic market, registering a growth of 35% YoY, while the export market witnessed a drop of 28% YoY.
For the September quarter, the company posted a robust set of numbers, with its net profit growing by 17.51% YoY to ₹2,020 crores. Income from operations recorded a new high of ₹10,777 crore in Q2, up 6% YoY.
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At ₹2,133 crore, quarterly EBITDA exceeded the ₹2,000 crore milestone for the first time, reflecting growth of 21% YoY, while the EBITDA margin expanded 260 basis points to 19.8%, driven by better realization and a richer product mix, which more than covered the drag on investments in growing electric electric scooters
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Meanwhile, the company sold over 8,000 units of Triumph Speed 400 motorcycles in Q2FY24. The company is on track to bring the brand experience to more than 100 cities by the end of the year, up from the current 26.
Earlier in July 2023, Bajaj Auto launched the Triumph Speed 400 and Triumph Scrambler 400X in association with British bike manufacturer Triumph in India at affordable prices. These bikes compete with Eicher Motors – Royal Enfield.
Triumph was a combination of classic, iconic style and modern technology. The affordable Triumph would attract a new set of aspirational customers for Bajaj Auto, according to analysts.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Updated: 20 Nov 2023, 18:28 IST